(MENAFN- The Arabian Post)

Beijing has initiated sweeping agricultural trade measures targeting the United States, Canada and the European Union as a means to counter duties imposed on Chinese electric vehicles. The move centres on sectors worth billions of dollars in export value and signals a new front in the global tariff standoff as Chinese factories ramp up global auto-sales ambitions.

According to official announcements and industry trackers, China imposed tariffs and import restrictions on major agricultural products including soybeans, pork, canola and cognac after Western governments raised tariffs on Chinese EV imports-some reaching 100 per cent in the US, and up to 35 per cent in the EU. Those duties stemmed from concerns about subsidised manufacturing, imports displacing domestic output and national-security implications tied to EV supply-chains.

One Chinese commercial diplomat told Canadian media that Ottawa's export restraints on Chinese EVs directly triggered Beijing's agriculture penalties. Canadian farmers in canola and pulses markets have already seen orders plummet and export corridors shut or taxed heavily. European spirits producers also face duties: cognac exports to China, valued at around $1.7 billion annually, have dropped by about 35 per cent since the levy took effect.

Analysts say the strategy is calculated. While China's domestic market remains protected from full import competition, its international agriculture import volumes give Beijing leverage. An academic at Peking University noted that“a slight adjustment in China's import preferences can ripple through farming regions and rural constituencies that carry significant political weight”. By focusing on sectors with concentrated politically-sensitive producers, China increases the pressure on Western governments to reconsider EV levies.

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On the Western side, officials are signalling that they are unlikely to surrender their EV-tariff stance. A senior analyst at a Brussels-based think-tank said that the European Commission had“clearly shown that it was not willing to back down from the EV case”, citing China's rapid auto-industry progress and state-support programmes. With climate targets and supply-chain security on the table, Western capitals view EV tariffs as integral to domestic industry viability.

Yet the backlash in agriculture could be deeper and more enduring than the EV duties themselves. A supply-chain expert explained that new contracts, logistics investments and alternative-buyer relationships developed in response to Chinese import suspensions may lock in shifts for years to come. In concrete terms, U. S. soybean farmers-who sold $12.6 billion worth to China in 2024-have seen export volumes fall to zero for key new-crop shipments, while Canadian producers of rapeseed and pea oil are facing a near-complete market closure under 100 per cent tariffs.

Observers point out that agriculture is an especially potent tool in trade diplomacy because it touches multiple layers of the economy: from regional employment to global commodity markets and corporate finances. By wielding farm-product bans or tariffs, Beijing can inflict political damage in sending countries while avoiding direct escalation of high-tech sectors where Western governments might respond more aggressively.

For Western farm sectors the choices are stark. Some firms are exploring alternative markets in Latin America, Africa or South-East Asia, while others are pressing their governments for compensation or trade-negotiation efforts. Meanwhile, Western trade officials are increasingly emphasising diversification of supply-chains away from China, which may dampen China's leverage over time.

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