China has intensified its trade retaliation against the United States by suspending soybean import licenses for three U.S. companies and halting imports of U.S. logs. The affected companies are CHS Inc., Louis Dreyfus Company Grains Merchandising LLC, and EGT. The General Administration of Customs cited the detection of contaminants, such as ergot and seed coating agents in soybeans, and pests like bark beetles and longhorn beetles in logs, as reasons for these measures.

These actions are a direct response to the U.S. government’s recent decision to double tariffs on Chinese imports, which took effect on March 3, 2025. In retaliation, China has imposed additional tariffs on various U.S. agricultural products, including soybeans, wheat, corn, and cotton, with rates up to 15%. These tariffs are set to take effect on March 10, 2025.

The escalating trade tensions have had significant impacts on global markets. The U.S. dollar hit a three-month low, and major stock indices, including the FTSE 100, experienced notable declines. Investor sentiment is increasingly anxious about potential economic slowdowns and higher inflation resulting from the trade disputes.