China has suspended soybean import licenses for three US firms and halted US log imports

China has escalated its trade retaliation against the United States by suspending soybean import licenses for three U.S. firms and halting U.S. log imports. This move follows the U.S. imposing additional tariffs on Chinese goods.

Earlier, China announced new import levies on $21 billion worth of U.S. agricultural products, including soybeans, wheat, meat, and cotton.

Customs officials cited quality concerns for the suspensions, claiming to have detected contaminants such as ergot and seed coating agents in soybeans and pests like small worms and aspergillus in U.S. logs.

These actions were taken in response to U.S. President Donald Trump’s decision to raise tariffs by an additional 10%, bringing the total to 20%, as part of efforts to pressure China over drug-related concerns. China, a key market for U.S. soybeans, accounted for nearly $12.8 billion in trade in 2024.

The suspension of log imports is also linked to Trump’s recent decision to investigate imported lumber, with potential 25% tariffs under consideration. Analysts suggest that Beijing’s move is in line with past strategies of using phytosanitary regulations as a trade retaliation tool, targeting bulk agricultural imports like soybeans and logs, which are naturally prone to plant health issues.

This article was written by Eamonn Sheridan at www.forexlive.com.