China-US trade war heats up as Beijing’s tariffs take effect

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People shop for vegetables in a market in Beijing on March 9, 2025. Consumer prices in China fell last month, with authorities struggling to kickstart spending and trade headwinds intensifying as US tariffs kick in under Donald Trump. (AFP)
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A vendor shouts out his price for lettuce in a market in Beijing on March 9, 2025, as China's trade war with the US escalates, triggered by Trump's tariffs. (AFP)
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Updated 10 March 2025
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China-US trade war heats up as Beijing’s tariffs take effect

  • After imposing a blanket 10 percent tariff on all Chinese goods in early February, Trump hiked the rate to 20 percent last week
  • China retaliated by imposing levies of 10 and 15 percent on several US farm products, a move designed to hurt Trump’s voter base

BEIJING: China’s tariffs on certain US agricultural goods in retaliation for President Donald Trump’s latest hike on Chinese imports came into force Monday, as trade tensions mount between the world’s two leading economies.
Since retaking office in January, Trump has unleashed a barrage of tariffs on major US trading partners, including China, Canada and Mexico, citing their failure to stop illegal immigration and flows of deadly fentanyl.
After imposing a blanket 10 percent tariff on all Chinese goods in early February, Trump hiked the rate to 20 percent last week.
Beijing reacted quickly, its finance ministry accusing Washington of “undermining” the multilateral trading system and announcing fresh measures of its own.
Those tariffs come into effect Monday and see levies of 10 and 15 percent imposed on several US farm products.
Chicken, wheat, corn and cotton from the United States will now be subject to the higher charge.
Soybeans, sorghum, pork, beef, aquatic products, fruit, vegetables and dairy will face the slightly lower rate.
The tariffs will not apply to goods that left before March 10, however, as long as they arrive in China by April 12.
Analysts say Beijing’s retaliatory tariffs are designed to hurt Trump’s voter base while remaining restrained enough to allow room to hash out a trade deal.
The increasing trade headwinds add to difficulties faced by Chinese leaders currently seeking to stabilize the country’s wavering economy.
Sluggish consumer spending, a prolonged debt crisis in the vast property sector and high youth unemployment are among the issues now facing policymakers.
Analysts say China’s exports — which last year reached record highs — might not provide the same economic lifeline for Beijing as its trade war with Washington intensifies.

Experts say the full effects of the recent wave of tariffs have yet to be fully felt, though early signs already indicate a downturn in shipments.
China’s exports grew 2.3 percent year-on-year during the first two months of 2025, official data showed Friday, missing expectations and slowing significantly from the 10.7 percent growth recorded in December.
“As exports face downside risk with trade war looming, the fiscal policy needs to become more proactive,” wrote Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.
The latest trade data came as Chinese officials congregated in Beijing for the country’s largest annual political gathering, known as the “Two Sessions.”
During a speech to delegates on Wednesday, Premier Li Qiang laid out the government’s economic strategy for the year ahead, acknowledging “an increasingly complex and severe external environment.”
Li also announced that the government’s official growth target for the year ahead would be “around five percent” — the same as 2024.
Many economists consider that goal to be ambitious, considering the hurdles facing China’s economy.
“If fiscal spending starts to ramp up again soon then that could more than offset the near-term hit to growth from tariffs,” wrote Julian Evans-Pritchard of Capital Economics.
“However, given the wider headwinds... we still aren’t convinced that fiscal support will be sufficient to deliver anything more than a short-lived boost,” he added.
 


In rare overlap, Chinese Muslims observe Ramadan with Lunar New Year

Updated 6 sec ago
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In rare overlap, Chinese Muslims observe Ramadan with Lunar New Year

  • Lunar New Year started on Feb. 17 and is celebrated for another two weeks
  • Chinese Indonesians make up about 3 percent of the Indonesian population

JAKARTA: Every year, on the first day of Lunar New Year, Febriani visits relatives and gathers for a feast with her Chinese Muslim family, part of a long-standing tradition honoring their ethnic heritage.

But this year, as Thursday marks the beginning of Ramadan, she is celebrating two important occasions within the same week, in a rare overlap that last took place in 1995.

“I’m very happy and grateful that Lunar New Year and Ramadan are celebrated so closely. I observe both every year, so it’s truly special,” she told Arab News.

Widely observed across Asia, the Lunar New Year or Chinese New Year festival is believed to date back to the 14th century B.C., to the times of the Shang Dynasty, China’s earliest ruling dynasty, when people celebrated good harvests.

In 2026, it started on Feb. 17 and is celebrated for another two weeks. For many, celebrations typically involve elaborate feasts, giving children pocket money in red envelopes, and watching dragon dance parades.

In Indonesia, Chinese-descent citizens make up an estimated 3 percent of the country’s Muslim-majority population of more than 280 million. While most are either Buddhists or Christians, a small minority professes Islam.

For 25-year-old Febriani, both Lunar New Year and Ramadan are equally meaningful.

“The two celebrations teach us to strengthen bonds, to share with one another, and to become closer to family,” she said.

“They are both important to me because they happen only once every year and they’re always an occasion to gather with the extended family. It is also a chance to self-reflect and strengthen relationships with your loved ones.”

For Naga Kunadi, whose family lives in Central Java’s Cepu district, Chinese New Year is all about embracing his ethnic identity.

Earlier in the week, his family was busy preparing for the new year’s feast, which was a fusion of Chinese and Indonesian dishes, such as claypot tofu, meatball soup and shumai, or steamed dumplings.

“To celebrate Chinese New Year, we prepared halal Chinese food at home. It’s also a way to introduce to my children the traditions from our Chinese side, but there’s a bit of a fusion because my wife is Javanese,” Kunadi told Arab News.

Kunadi, an Islamic teacher at the Lautze Mosque in Jakarta, sees both Chinese New Year and Ramadan as opportunities to teach important life values for his two children. 

Upholding Chinese New Year traditions with his family is for him a way of preserving his ethnic heritage.

“We want to preserve cultural values as long as it does not clash with our religion,” he said.

“If we leave our culture behind, we might lose our identity, so this is something I want to teach my children.”

The fasting month of Ramadan, on the other hand, gives him a chance to teach and practice honesty.

“I want to focus on the religious and moral aspects during the holy month of Ramadan, when we practice honesty on a personal level,” Kunadi said.

“There’s always an opportunity to eat or snack in secret without anybody knowing, but we train ourselves not to do that. For me, Ramadan is a time for everyone to put honesty into practice, including myself and my children.”