Tidbits, More Tariffs, US Planting, ENSO, Export Inspections 4/8/25

Highlights

On 2 April, Trump applied an additional 34% reciprocal tariffs on China added to the existing 20% duties already applied to Chinese imports. Together, they bring the total tariff rate to 54%, affecting nearly $600 billion in annual trade to combat currency manipulation, dumping (selling below the cost of production) of industrial products, and a host of other lesser offenses.

China responded over the weekend with a series of countermeasures, including tighter export controls on several categories of rare earth minerals and the addition of more U.S. firms to its “Unreliable Entity List.” The blacklist targets U.S. businesses that the Chinese regime deems to be a threat to its national security and economic development. The estimated cost in terms of a tariff equivalent is a tariff of 67% on all U.S. products.

Yesterday, President Trump threatened to impose an additional 50% tariff on China if it does not withdraw its retaliatory measures on U.S. goods. If it fails to do so, the additional 50% tariffs will be implemented tomorrow (9 April) and bring the effective tariff on Chinese products imported to the U.S. to 104%. That will pressure soybeans futures lower. The president also made it clear to China that all trade negotiations with China would be terminated if Beijing failed to rescind its new tariffs.

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