China is imposing a 179 per cent tariff on sorghum from the United States, a hit that will back up sorghum in the North American feed markets.
That will likely ripple through to all grains used in feed rations.
The Chinese response answers a move by United States President Donald Trump to ban American companies from selling parts and services to ZTE for seven years.
The US threatened the ban in 2017 after ZTE illegally shipped equipment to Iran and North Korea.
Further misconduct led the Commerce Department to impose the ban, according to a statement from the agency.
ZTE buys microchips from Qualcomm ( ) and glass from Corning ( ), and the company is the fourth biggest smartphone supplier in the United States.
This is the latest in a string of tariffs the United States and China have imposed in tit-for-tat moves that began early in the month.
First the U.S. slapped a 25 per cent tariff on steel snd aluminum. China countered with tariffs on imports worth about $3 billion last year, including pork.
Trump then imposed tariffs on more Chinese products and China answered with a much bigger round of tariffs that includes beef, fruits, nuts and cotton.
China offered an olive branch by reducing tariffs on autos, but Trump’s response was the ban on selling to ZTE.