China has declared that from March 10 it will implement additional tariffs of up to 15% on some American goods and limit exports to 15 American companies. This response from China’s Finance and Commerce Ministries comes as the U.S. imposes further tariffs on Chinese imports.

The additional Chinese tariffs mainly affect American agricultural products, including corn and soybeans, which will now face new duties of 15% and 10% respectively, as per the information on the finance ministry’s website.

Among the companies affected by the export controls are Leidos and General Dynamics Land Systems, as per the commerce ministry’s statement.

Despite the tensions, China’s relationship with the U.S. is expected to face disagreements, but China will not accept being pressured or threatened, said Lou Qinjian, spokesperson for the third session of the 14th National People’s Congress, during a press conference on Tuesday morning.

The White House has confirmed that new duties of 10% on Chinese goods will take effect Tuesday, bringing the total new tariffs imposed in just about a month to 20%.

In a statement released earlier, China’s Ministry of Commerce firmly rejected additional U.S. tariffs on Chinese goods and vowed to retaliate.

“Trade wars carry the risk of retaliation and escalation — and this is certainly the case with China, and potentially with Canada and Mexico, which are also facing tariffs today,” Frederique Carrier, head of investment strategy at RBC Wealth Management, told CNBC’s “Capital Connection” on Tuesday.

China’s response to the first round of new U.S. tariffs in February included increased duties on certain U.S. energy imports and placing two U.S. companies on a list of unreliable entities that could limit their ability to conduct business in China.

The average effective U.S. tariff rate on Chinese goods is set to reach 33%, up from around 13% before U.S. President Donald Trump started his latest term in January, according to estimates from Nomura’s Chief China economist Ting Lu.

According to Allianz Research analysis, U.S. exports of agricultural products such as soybeans to China account for the largest share of U.S. goods exported to China at 1.2%, or $22.3 billion, as of 2023. Oil and gas ranked second by share at 1%, or $19.3 billion, the research showed. Pharmaceuticals ranked third at 0.8% or $15.6 billion.