Tariff Showdown: Trump Slaps 145% Tariff On China As Trade War Heats Up Again

In a dramatic turn of events, U.S. President Donald Trump has imposed a staggering 145% tariff on all Chinese imports, despite recently pausing similar tariffs for other countries. The surprise move has reignited fears of a full-scale trade war — and China is not backing down.

Beijing responded swiftly and fiercely, warning it will “fight to the end” if the U.S. continues to escalate tensions. On Friday, China retaliated by significantly increasing its own tariffs on American goods entering the country.

To understand the stakes, CNN analyzed one of China’s biggest imports from the U.S.: soybeans — a vital commodity mostly used for animal feed. The focus: Can China replace its U.S. soybean supply elsewhere, and what could American farmers lose if it does?

A Deeply Entwined Trade Relationship

Despite the tough rhetoric, the U.S. and China remain heavily reliant on each other. However, China exports roughly three times more to the U.S. than it imports, contributing to a massive $300 billion trade deficit — a key motivator behind Trump’s tariff push.

China's top imports from the U.S. are agricultural products like soybeans, oilseeds, and grains. During the original trade war in Trump’s first term, soybean exports already suffered as China diversified its suppliers. Now, with a fresh 125% Chinese tariff on U.S. goods — on top of an existing 10% — the total tariff burden on U.S. soybeans has ballooned to 135%.

Analysts warn this could send U.S. soybean exports to China plummeting to near zero.

Brazil Steps In — Again

Back in the first trade war, Brazil emerged as a major winner. As the world’s top soybean exporter, it quickly filled the gap left by the U.S., with its soybean exports to China skyrocketing over 280% since 2010.

That trend is only expected to grow. During a state visit to Brazil last November, Chinese President Xi Jinping sought to deepen trade ties, and in 2024, Brazil became the main source of China’s soybean imports, accounting for over 73% of total shipments.

With Brazil’s soybean crop projected to hit record highs this year, and Argentina (the world’s #3 producer) also in the mix, China has plenty of alternatives.

What This Means for U.S. Farmers

The fallout could be devastating. During the 2018 trade war, U.S. farmers suffered losses of nearly $27 billion, with 71% of that directly tied to soybeans, according to the American Soybean Association.

Many of those farmers live in pro-Trump states, which makes the latest tariffs politically risky. In fact, only Illinois (the top U.S. soybean-producing state) and Minnesota (the third-largest) supported Kamala Harris in the 2024 election.

China Eyes New Trade Allies

Looking to bolster its position, China is expanding its network. On Thursday, Beijing signaled its intention to deepen trade ties with ASEAN nations, aiming for tighter coordination amid rising U.S. pressure. Meanwhile, Chinese officials are also exploring new trade talks with the EU, particularly around electric vehicles and tariff relief.

The Bottom Line

With both nations digging in, neither appears ready to blink first. But as China diversifies its import sources and U.S. farmers brace for another potential blow, the consequences of this escalating standoff could ripple across global markets — and the 2024 election aftermath.