National Agri-Marketing Association
NAMA Website
Upcoming Events
Chapters
Agri-Marketing Conf
Best of NAMA 2018
Member Directory












BREAKING: CHINA ANNOUNCES 25% TARIFF ON U.S. SOYBEANS, OTHER AG PRODUCTS
Oklahoma Farm Radio Network reports:

Most U.S. Ag products that are exported to China may soon have a twenty five percent levy added to their imported prices- as farmers and ranchers are now sitting right in the middle- fully exposed- between two economic heavyweights as they are charging full speed towards a very nasty trade war.

On Tuesday- as part of the U.S. response to China's unfair trade practices related to the forced transfer of U.S. technology and intellectual property, the Office of the U.S. Trade Representative (USTR) published a proposed list of products imported from China that could be subject to additional tariffs- $50 Billion worth. Click here for the complete story.

Early this morning- the Chinese fired back. And soybeans are their headliner in that they plan on adding a 25% duty on the oilseed and its products.

The Asian nation plans to impose 25 percent duties on a slew of U.S. agricultural commodities such as soybeans, wheat, corn, cotton, sorghum, tobacco and beef, according to the Ministry of Commerce in Beijing. They are among 106 U.S. products targeted ranging from automobiles to chemicals and aircraft.

Yesterday afternoon- former Senator Max Baucus issued a statement under the banner of the Ag Coalition Farmers for Free Trade- foreshadowing what the Chinese announced this morning- "Farmers are going to get squeezed by this decision from all sides. First, the tariffs the U.S. announced today will make the ag equipment and inputs they rely on more expensive. Then they'll face new tariffs on their exports when China retaliates."

Bloomberg offered one take from an analyst that suggests this is an economic and political response- "China's response carries both economic and political weight as agricultural states are major supporting regions for Trump," said Monica Tu, an analyst at Shanghai JC Intelligence Co. "The tariffs on U.S. imports including soybeans is China's response that matches the scale of proposed U.S. tariffs."

Ag futures are tumbling with this news- and the Stock Market futures are also showing a big loss after the end of day rally yesterday on Wall Street.

BUT REMEMBER- while the market hates uncertainty- as this sorts itself out- the reality for our exports may or may not be as bad as we first fear.

Questions like- when tariffs will actually be imposed- how long- how easily will China be able to source Ag products- all these questions will be lived out in the immediate future.


Search News & Articles



















Proudly associated with:
American Business Media Canadian Agri-Marketing Association National Agri-Marketing Association
Agricultural Relations Council National Association of Farm Broadcasters American Agricultural Editors' Association Livestock Publications Council
All content © 2019, Henderson Communications LLC. | User Agreement