Submit your Article

Beijing's tariffs on certain US agricultural goods in retaliation for President Donald Trump's latest hike on Chinese imports came into force Monday, as trade tensions mount between the world's two leading economies, AFP reported.

Since retaking office in January, Trump has unleashed a barrage of tariffs on major US trading partners, including China, Canada and Mexico, citing their failure to stop illegal immigration and flows of deadly fentanyl.

After imposing a blanket 10 percent tariff on all Chinese goods in early February, Trump hiked the rate to 20 percent last week.

Beijing reacted quickly, its finance ministry accusing Washington of "undermining" the multilateral trading system and announcing fresh measures of its own.

Those tariffs come into effect Monday and see levies of 10 and 15 percent imposed on several US farm products.

Chicken, wheat, corn and cotton from the United States will now be subject to the higher charge.

Soybeans, sorghum, pork, beef, aquatic products, fruit, vegetables and dairy will face the slightly lower rate.

The tariffs will not apply to goods that left before March 10, however, as long as they arrive in China by April 12, according to AFP.

Analysts say Beijing's retaliatory tariffs are designed to hurt Trump's voter base while remaining restrained enough to allow room to hash out a trade deal.

The increasing trade headwinds add to difficulties faced by Chinese leaders currently seeking to stabilise the country's wavering economy.

Sluggish consumer spending, a prolonged debt crisis in the vast property sector and high youth unemployment are among the issues now facing policymakers.

Analysts say China's exports -- which last year reached record highs -- might not provide the same economic lifeline for Beijing as its trade war with Washington intensifies.

Sixteen years have passed since the abolition of Nepal’s 238-year-old monarchy, yet the political landscape remains unsettled.

The occasional statements from former King Gyanendra Shah and the persistent protests by his supporters continue to rattle the fragile foundations of the federal republic established in 2008. Interestingly, these pro-monarchist demonstrations often serve as a unifying force for Nepal’s major political parties, temporarily bridging their deep-rooted divisions.

As spring arrives, pro-monarchist forces have once again intensified their protests, echoing their perennial demands for the restoration of the Hindu state and the monarchy. While large-scale demonstrations were rare between 2008 and 2018, the momentum has been steadily building since then, though it has yet to reach a tipping point capable of overturning the 2015 constitution.

The growing disillusionment with successive governments, plagued by unfulfilled promises and systemic failures, has fueled anti-establishment sentiment. This dissatisfaction has provided fertile ground for the resurgence of royalist forces, whose recent street protests have sparked fear and anxiety among Nepal’s major political parties. Spring, traditionally a season of political unrest in Nepal, has once again become a stage for demonstrations, with royalist protests capturing significant attention this year. Even within the largest party, the Nepali Congress, there are vocal advocates for reinstating the Hindu state—though not necessarily the monarchy.

The latest wave of protests was triggered by former King Gyanendra Shah’s Democracy Day message on Falgun 7. In his address, he called on all “nationalists,” democrats, and patriots to unite and address the country’s deepening crisis. While he stopped short of explicitly urging people to take to the streets, his message was notably more pointed than his previous vague appeals. Following this, pro-monarchist forces organized sizable protests in Pokhara, Biratnagar, and Madhes provinces, sending alarm bells ringing among mainstream political parties.

The former king’s message, likely crafted after informal consultations with his supporters, has galvanized a series of protests across the country. Two prominent parties—the Rastriya Prajatantra Party led by Rajendra Lingden and the Rastriya Prajatantra Party (Nepal) led by Kamal Thapa—have openly endorsed the king’s agenda. However, dozens of smaller groups and outfits are also actively working toward the same goal. While Gyanendra Shah has not formally aligned himself with any political party, he has provided tactical support, including financial backing, to these groups.

This is not the first time monarchist forces have made their presence felt. Significant demonstrations in 2021 and 2023 drew considerable attention from both domestic political parties and the international community. However, these protests have lacked a unified structure or leadership, with deep divisions among the various groups hindering the emergence of a cohesive movement.

In response to the growing unrest, the CPN (Maoist Center), which prides itself as a defender of the 2015 constitution, has suspended its ongoing party programs. Party leaders cite the need to monitor the royalist forces, whom they accuse of attempting to create chaos. Meanwhile, Prime Minister KP Sharma Oli, CPN (Maoist Center) Chairman Pushpa Kamal Dahal, Nepali Congress President Sher Bahadur Deuba, and other leaders have issued a unified message to the former king: if he wishes to return to power, he should register a political party and contest elections. Some have even threatened to arrest him if he undermines the current political system. Royalist parties have countered by asserting that the king is a unifying figure above partisan politics and therefore cannot be expected to contest elections.

Gyanendra Shah has been actively touring the country to rally support, while also making frequent visits to Uttar Pradesh, India, to meet Chief Minister Yogi Adityanath, a long-time supporter of his bid to regain power. The former king appears to be seeking backing from India’s Bharatiya Janata Party (BJP) for his campaign to reinstate the monarchy and the Hindu state. While some within the BJP support the idea of Nepal as a Hindu state, it remains unclear whether they endorse the restoration of the monarchy. Last August, Gyanendra’s visit to Bhutan at the invitation of King Jigme Khesar Namgyel Wangchuk fueled rumors of third-country involvement, adding another layer of intrigue to his efforts.

Adding to the political turbulence, former US President Donald Trump’s remarks labeling USAID funding for Nepal’s fiscal federalism as a “fraud” have bolstered pro-monarchy and right-wing forces in Nepal. These comments have been seized upon by royalist groups to discredit the current federal system and argue for a return to a more centralized, monarchical governance model.

As major political parties face growing unpopularity due to rampant corruption, unemployment, and economic stagnation, royalist forces see an opportunity to advance their agenda. On a recent Sunday, supporters organized a mass demonstration in Kathmandu, coinciding with Gyanendra’s return to the capital after a week-long stay in Pokhara. He was greeted by enthusiastic supporters at the airport and escorted to his residence, Nirmal Niwas, under heightened security.

Criticism of the 2015 constitution is mounting, fueled by the failures of the political parties that have governed since the monarchy’s abolition. Widespread corruption, economic stagnation, and a lack of opportunities have created a pervasive sense of pessimism, which royalist forces are exploiting to push their agenda. Political analysts warn that the current system could be in jeopardy if mainstream parties fail to address these issues effectively.

While even the monarchist forces doubt that street protests alone can restore the monarchy, they believe their movement could pressure mainstream parties into making concessions. However, the lack of a clear representative for the former king complicates any potential negotiations with the current government. Royalist forces remain steadfast in their belief that only the monarchy can resolve the nation’s deepening crisis. As the political drama unfolds, Nepal stands at a crossroads, with its future hanging in the balance.

Former King Gyanendra Shah arrived in Kathmandu on Sunday.

He was given a grand welcome by his supporters at the Tribhuvan International Airport.

Rastriya Prajatantra Party Chairman Rajendra Lingden among party leaders welcomed him at the domestic terminal.

Prior to welcoming him, pro-monarchy supporters staged a protest outside the airport.

China announced tariffs on over $2.6 billion worth of Canadian agricultural and food products on Saturday, retaliating against levies Ottawa introduced in October and opening a new front in a trade war largely driven by U.S. President Donald Trump's tariff threats, Reuters reported.

The levies, announced by the commerce ministry and scheduled to take effect on March 20, match the 100% and 25% import duties Canada slapped on China-made electric vehicles and steel and aluminium products just over four months ago.

By excluding canola, which is also known as rapeseed, and was one of Canada's top exports to the world's No.1 agricultural importer prior to China investigating it for anti-dumping last year, Beijing may be keeping the door open for trade talks.

But the tariffs also serve as a warning shot, analysts say, with the Trump administration having signalled it could ease 25% import levies the White House is threatening Canada and Mexico with if they apply the same extra 20% duty he has slapped on Chinese goods over fentanyl flows.

"Canada's measures seriously violate World Trade Organization rules, constitute a typical act of protectionism and are discriminatory measures that severely harm China's legitimate rights and interests," the commerce ministry said in a statement, according to Reuters.

China will apply a 100% tariff to just over $1 billion of Canadian rapeseed oil, oil cakes and pea imports, and a 25% duty on $1.6 billion worth of Canadian aquatic products and pork.

"The timing may serve as a warning shot," said Dan Wang, China director at Eurasia Group in Singapore. "By striking now, China reminds Canada of the cost of aligning too closely with American trade policy."

"China's delayed response (to Ottawa's October tariffs) likely reflects both capacity constraints and strategic signalling," she added. "The commerce ministry is stretched thin, juggling trade disputes with the U.S. and European Union."

"Canada, a lower priority, had to wait its turn."

The Canadian embassy in Beijing did not immediately respond to a Reuters request for comment.

Canadian Prime Minister Justin Trudeau said in August that Ottawa was imposing the levies to counter what he called China's intentional state-directed policy of over-capacity, following the lead of the United States and European Union, both of which have also applied import levies to Chinese-made EVs.

In response, China in September launched an anti-dumping investigation into Canadian canola imports. More than half of Canada's canola exports go to China and the trade was worth $3.7 billion in 2023, according to the Canola Council of Canada.

"The investigation on Canadian canola is still ongoing. That canola was not included in the list of tariffs this time might also be a gesture to leave room for negotiations," said Rosa Wang, an analyst with agricultural consultancy JCI.

Beijing could also be hoping that a change in government in Ottawa makes it more amenable. Canada's next national election must be held by October 20.

China is Canada's second-largest trading partner, trailing far behind the United States. Canada exported $47 billion worth of goods to the world's second-largest economy in 2024, according to Chinese customs data.

China is Canada's third-most important pork export market. It takes products for which Canada does not have easy alternate markets, said Cam Dahl, General Manager of the Manitoba Pork Council.

“The things we export to China, heads for example, are parts of the animal that don’t have easy other markets," he said. "We can’t take that container that’s going to China and just ship it to Mexico.”

China is Canada's number-two market for canola, said Chris Davison, president and CEO of the Canola Council of Canada, Reuters reported.

"The (tariff) levels that are being talked about here are prohibitive levels, for sure. ... The impacts will be felt across the industry," he said, adding that he would like to see financial support from the government.

Canadian government spokespersons did not immediately respond to requests for comment.

"To be honest I don’t understand why they are doing this one at all," said Even Pay, agriculture analyst at Trivium China.

"I expect Beijing will use the election and change of leader as an opportunity to reset relations as they did with Australia," she added.

China in 2020 introduced a series of tariffs, bans and other restrictions on key Australian exports, including barley, wine, beef, coal, lobster and timber in retaliation to Canberra calling for a COVID origins probe.

Beijing did not begin lifting the bans until 2023, one year after Australian Prime Minister Anthony Albanese ousted Scott Morrison, who had called for the inquiry.