Published: Mon, April 09, 2018
Science | By Joan Schultz

China Announced New Tariffs on US Products

China Announced New Tariffs on US Products

"If these tariff threats escalate and actually materialize, then it's not only going to be a lose-lose for China and the United States, it will be a lose, lose, lose - China, the United States and the world economy", former U.S. Treasury Department official Christine McDaniel, now with the Mercatus Center at George Mason University in Virginia, told an Australian news agency. While many countries have boosted purchases of USA soybeans, it would take time to offset the loss of a such a major market. "It will be a couple months before tariffs on either side would go into effect and be implemented, and we're hopeful that China will do the right thing".

China is the largest purchaser of USA soybeans, consuming almost a third of US production worth 14 billion dollars annually. More than $660 million in pork from US producers - including "variety meats" like ears, organ meat and hooves - was exported to China a year ago, according to the Illinois Farm Bureau.

On Tuesday, Iowa farmer April Hemmes contracted the sale of about 25 percent of the soybeans she will produce this year.

Association President John Heisdorffer, an Iowa farmer, is calling on the Trump administration to withdraw its proposed tariffs and meet with soybean farmers to discuss ways to improve competitiveness without resorting to tariffs.

Economists have warned the move could prompt China to retaliate and lead to higher prices for American consumers.

In the second half of 2017, following the market reopening following a 13-year closure due to the US BSE episode in 2003, US beef exports to China totalled 3020 tonnes, valued at $31 million.

The release of the list comes just after China hit $3bn worth of United States products with tariffs in response to steel and aluminium tariffs the USA has imposed. "We now export about 26 percent of the pork that is produced in the United States".

"While news of the possible tariffs is concerning, he said in the short term it won't change much".

"China raises lot of pork and they feed pork soy", he said.

China also has threatened tariffs on USA automakers.

Tuesday night, China announced plans to levy a 25 percent tariff on $50 billion of additional us goods, but the Commerce Ministry said implementation of the tariffs would be determined by the implementation date of USA tariffs on Chinese products. "But America isn't the only game in town to buy soybeans".

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