Chinese agricultural stocks saw a significant increase on Tuesday, with investors anticipating that tariffs would limit U.S. agricultural imports and boost domestic producers. This surge in agricultural stocks defied a wider market downturn brought on by the escalating U.S.-China trade war.

Dabeinong Tech, a company specializing in seed and animal feed production, experienced a 6.45% rise in its shares by 0424 GMT on Tuesday. Shares of Wens Foodstuff, one of the leading pig breeders in China, also saw a 5.1% increase.

Other major agricultural firms, such as Wellhope Foods and New Hope Liuhe, observed rises of 6.3% and 2.45% in their stock prices, respectively.

The implementation of harsh import levies by U.S. President Donald Trump and China's retaliatory tariffs have resulted in significant market instability globally, leading to substantial losses in stock market value. Conversely, Chinese agricultural stocks have shown growth this month, with the Hang Seng index of mainland China's agricultural products stocks rising by 8.6% in April.

This trend is attributed to the belief that China's retaliatory tariffs will benefit the domestic farming sector and that agriculture is a crucial industry in the ongoing trade tensions.

Looking ahead, assets manager Yang Tingwu of Tongheng Investment noted that reduced imports of agricultural products could be advantageous for the local farming industry in the short term. Additionally, China's long-term goal of achieving self-sufficiency in grain production is emphasized in light of the intensifying trade rivalry with the U.S.

China recently unveiled a strategic plan aimed at bolstering domestic agriculture and ensuring a more secure food supply by 2035. The retaliatory measures taken by China against the U.S., including additional tariffs on American goods, are likely to severely impact agricultural trade between the two nations.