Another round of tariff threats from China
Story Date: 8/7/2018

 

Source: POLITICO'S MORNING AGRICULTURE, 8/6/18

China's announcement Friday that it is prepared to slap another $60 billion worth of American products with tariffs has sparked a fresh round of anxiety among export-reliant sectors. Ag producers were already hard-hit from the first two rounds of Chinese retaliatory tariffs but this new round leaves very little in American exports to the nation unscathed.

Loads of tariffs: If it carries through on the latest retaliation, China will be imposing tariffs of between 5 and 25 percent on nearly all of the $130 billion in goods in imports from the United States. China's Ministry of Finance said Friday the new tariffs would target more than 5,200 types of goods that the U.S. sends. Those include: U.S. energy exports like biodiesel and liquefied natural gas, and many more agricultural goods like lamb and honey.

The food and ag hit list: According to an informal translation, the latest target list from Beijing includes quite a broad variety of food and agriculture products: hops, maple syrup, whey protein, frozen corn, margarine and shortening, peanuts, ginseng, and "packaged foods for infants and young children" — a roster that will affect producers from Vermont to California and everywhere in between. It also includes agricultural equipment the U.S. may export like milking machines and parts.

Hides are a new target: A number of U.S. hides, skins and leather products would also face tariffs of either 5 or 25 percent from China. The industry had not previously been targeted for retaliatory tariffs by China or any other trading partner, according to the U.S. Hide, Skin and Leather Association.

"The Chinese market is not just important for the U.S. hide, skin and leather industry — it is essential to its survival, particularly as formidable competitors finalize free trade agreements that could place the U.S. industry at a competitive disadvantage," said Stephen Sothmann, president of the industry group.

The war that's not just about China: The steady drumbeat of news reports continues telling stories of how agriculture producers of all types are feeling the direct punch of the tariffs and counter-tariffs. The Wall Street Journal late last week profiled the plight of a kidney bean processor now that U.S. kidney beans are 25 percent more expensive in Europe after retaliatory tariffs were imposed there. That has one Wisconsin company struggling to store a major backlog of beans. 

CNBC highlighted stress in the apple industry, which is facing a "triple threat" of tariffs from Mexico, China and India With a drop in exports, analysts are predicting intensified competition between Washington and New York apple producers. 

























   Copyright © 2007 North Carolina Agribusiness Council, Inc. All Rights Reserved.
   All use of this Website is subject to our
Terms of Use Agreement and our Privacy Policy.