Beijing’s tariff retaliation targets Trump’s voter base: China’s latest tariffs on US agricultural products — which came into effect yesterday — are believed to be designed to target US President Donald Trump’s rural voter base, Al Arabiya reports, citing several analysts and trade experts. The China response also appears to be measured in order to leave room for negotiations, with the country opting to target a specific sector rather than an all-out tariff on US imports, Al Arabiya reports.

REFRESHER- China slapped the US with a new set of tariffs last week that are set to impact nearly USD 21 bn in US agricultural exports. The response includes a 15% tariff on US chicken, wheat, corn, and cotton, as well as an extra 10% levy on US soybeans, sorghum, pork, beef, and more. The tariffs were a response to the US’ move last week to double its China tariffs to 20%.

Shipping firms shy away from Hong Kong hub in fear of US-China escalation: Several shipping firms have been discreetly taking vessels off Hong Kong's flag registry and moving their operations out of the special administrative city over fears of getting caught in the crossfire of Beijing-Washington trade war, Reuters reported on Thursday, citing six unnamed shipping executives. The moves also come amid concerns that commercial maritime operations and ships could be commandeered by Chinese authorities in case of heightened geopolitical tensions in the Pacific.

The impact: The number of oceangoing vessels registered in Hong Kong decreased by more than 8% in January 2025 to 2.4k ships, compared to four years earlier.

ICYMI: The US Trade Representative is looking into charging upwards of USD 1.5 mn for Chinese-built vessels entering US ports, as part of a US probe into China’s increasing dominance in the global shipbuilding, maritime, and logistics industry. The US indicated that China is unfairly controlling certain sectors and fostering dependence.

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