American farmers in crisis. Soybean imports targeted. Beijing targets 15 American companies, including Silicon Valley drone makers and biotech industries. Taiwan issue and the microchip industry
After a month of words and threats, Donald Trump’s decisions are also starting to be felt in the economy. The new customs tariffs affecting China, Washington’s historical enemy, show that Trump 2.0 could permanently undermine the balance of recent years. Beijing, hit by the new 10% tariffs on all goods entering the United States, has reacted by declaring that it will not stand idly by, but will respond with a different tone from the silence it had maintained in recent months. Chinese Foreign Minister Lin Jian declared: “If the United States insists on starting a trade war, an economic war or any other conflict, then the other side will fight to the end, but the end will be bitter for everyone.”
AMERICAN FARMERS IN CRISIS
Starting March 10, 15% tariffs on wheat, corn, and barley will take effect, as will a 10% increase on imports of soybeans, pork, beef, fish, fruits, vegetables, and other agricultural products. In addition, imports of lumber from the United States will be banned, a disaster for American farmers and ranchers who in recent years voted overwhelmingly for Trump. It is worth remembering that the United States exported $12.8 billion in soybeans to China in 2024, making it the third largest importer of this product from the United States. In the past, during the 2018-2019 trade war between Trump and China, American farmers were so badly hurt by Beijing’s retaliatory tariffs that the federal government was forced to step in with $28 billion in subsidies to support the agricultural sector.
FENTANYL AND ANOTHER BATTLE
In this case too, Trump had started the trade war by promising to stop the trafficking of fentanyl, but failed to solve the problem and many analysts believe that this battle will remain open. China’s response, as always, is asymmetrical, hitting different sectors of the American economy. Beijing is targeting 15 American companies, including drone manufacturers from Silicon Valley and biotechnology industries.
Among the companies targeted by the new tariffs are American drone makers such as Skydio, as well as artificial intelligence company Shield AI, which makes dual-use (civilian and military) equipment. Biotech industries with close ties to China are also targeted by Chinese retaliation. Beijing has warned that it will denounce the United States at the World Trade Organization (WTO) over the new tariffs, an action it had already taken in February, when Trump approved the first 10% tariffs on Chinese products.
THE ISSUE OF TAIWAN AND THE MICROCHIP INDUSTRY
Another sensitive issue is Taiwan. The US administration is trying to move microchip production to the US. This week, the US president signed a $100 billion deal over the next four years with Taiwan Semiconductor Manufacturing (TSMC). Beijing has seen the move as an attempt to weaken US technological dependence on Asia and has described it as a strategy to maintain national dominance.
