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China suspends soybean import licence for three U.S. firms

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Also suspends imports of U.S. logs

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China says suspension due to phytosanitary issues

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Suspension coincides with retaliatory measures against

U.S.

tariffs

(Adds graphic)

By Mei Mei Chu and Ella Cao

BEIJING, March 4 (Reuters) - China suspended on Tuesday

the soybean import licences of three U.S. firms and halted

imports of U.S. logs, stepping up its retaliation for additional

U.S. tariffs on Chinese goods.

Earlier in the day, China also imposed import levies

covering $21 billion worth of U.S. agricultural and food

products including soybeans, wheat, meat and cotton.

The three U.S companies affected by the licence suspensions

are farmer-owned cooperative CHS Inc ( CHSCL ), global grains

exporter Louis Dreyfus Company Grains Merchandising LLC and

export grain terminal operator EGT, China's customs department

said in a statement.

Customs said it detected ergot and seed coating agent in

imported U.S. soybeans, while the suspension of U.S. log imports

was due to the detection of worms, aspergillus and other pests.

Media representatives for Louis Dreyfus, CHS and Bunge

Global ( BG ), which partially owns EGT, did not immediately

respond to requests for comment.

Beijing is retaliating against U.S. President Donald Trump's

decision to impose an extra 10% duty on China, effective

Tuesday, resulting in a cumulative 20% tariff in response to

what the White House considers Chinese inaction over drug flows.

About half of U.S. soybean exports are shipped to China,

totalling nearly $12.8 billion in trade in 2024, according to

the U.S. Census Bureau.

The suspension of U.S. logs was a direct response to Trump's

move on March 1 to order a trade investigation on imported

lumber. Trump had earlier told reporters that he was thinking

about imposing a 25% tariff rate on lumber and forest products.

"The announcement of import restrictions on U.S lumber and

soybeans linked with phytosanitary issues follows a long history

of similar measures by Beijing," said Even Pay, agriculture

analyst at Trivium China.

The bulk import volumes and natural origin of soybeans and

lumber make them susceptible to issues with plant health and

pests, creating a convenient target for trade retaliation, Pay

said.

China is one of the world's largest importers of wood

products and the third-largest destination for U.S. forest

products. It imported around $850 million worth of logs and

other rough wood products from the U.S. in 2024, according to

Chinese customs data.

PUNISHING FARMERS

Additional levies imposed by China earlier on Tuesday

comprised a 15% tariff on U.S. chicken, wheat, corn and cotton

and an extra levy of 10% on U.S. soybeans, sorghum, pork, beef,

aquatic products, fruits and vegetables and dairy imports,

effective from March 10.

The suspension on the three soybean exporters on top of

higher import tariffs will further restrict imports of the

oilseed into China.

Beijing's concerted efforts in recent years to greatly

reduce its dependence on U.S supplies has put it in a stronger

position to target U.S farm goods with less impact to its food

security and greater harm to U.S farmers compared to a 2018

trade war during Trump's first administration.

China has turned to South American producers, boosted

agriculture cooperation with allies and raised domestic

production through expanded planting and the use of technology.