[China taxes American soybeans, which are not high value-added.]
Only in retaliation, because at $12b of exports to China, it wasn’t just the biggest single agricultural crop, it was the majority of $20b of US ag exports to China. It’s not only a vital feed crop contributing to the price of pork, the principal meat there - soybeans are used in soy sauce, the major condiment, as well as soy milk and tofu, also major food staples. Bottom line is that this will cause food inflation - already a major issue there. China has a fairly rational tariff regimen, from a national interest standpoint. It imports low value-added items tariff-free, and tariffs high value-added items to encourage domestic and foreign companies to set up shop there.
taxing soybeans is more than a retaliation. it hurts Trump’s base and conveys a message. You know, China has repeatedly claimed that American government and congress are to blame for America’s trade deficit due to the policy that prevents hi-tech products (high value-added) from being exported to China.