China has suspended soybean import licenses for three major U.S. exporters, citing phytosanitary concerns. The move, coinciding with fresh tariffs, is expected to disrupt global soybean trade.

China has revoked the soybean import qualifications of three U.S. companies—CHS Inc, Louis Dreyfus Company Grains Merchandising LLC, and EGT—intensifying trade tensions between the world’s two largest economies. The suspension, announced by Chinese customs on Tuesday, follows the detection of ergot and seed coating agents in shipments from the United States.

The decision comes just hours after China imposed new tariffs on $21 billion worth of American agricultural and food products, in response to the additional 10% duty imposed by the U.S. on March 4. The cumulative tariff now stands at 20%, further straining agricultural trade between the two nations.

In addition to the soybean restrictions, China also halted imports of U.S. logs, citing the presence of pests such as small worms and aspergillus. While the official reasoning for the suspensions is based on phytosanitary concerns, the timing suggests a broader retaliatory strategy against U.S. trade policies.

The ban is likely to disrupt global soybean flows, potentially benefiting alternative suppliers such as Brazil and Argentina. As one of the largest buyers of U.S. soybeans for animal feed, China’s decision may have significant ripple effects on feed markets worldwide.