China’s decision to impose tariffs on US agricultural produce like soybeans and chicken is a “high impact, low cost” strategy, Oxford Economics’ Lead China Economist Louise Loo tells AFP. “China has actually been able to diversify its supply chain in these agricultural produce to other countries,” Loo says, while adding that US farmers are part of President Donald Trump’s “political base.” Loo warns that “the runway for further tariffs is clearly quite high.” If Trump imposed the 60 percent tariffs on China that he threatened during the campaign trail, that could have an impact on China’s GDP of around two percent. SOUNDBITES