December 17, 2019

 

China's current tariffs on US soybeans and pork after "phase one" US-China trade agreement: report

 


Reuters has listed tariffs past and present for US exports of soybeans and pork to China in a report.

 

The United States and China recently agreed to a "phase one" trade agreement, the first after a protracted 17-month trade war between the two nations.

 

Within the new deal, the US has reduced some tariffs while China withdrew enforcing new retaliatory tariffs which were set to be implemented from December 15, 2019. Before the deal was agreed, China was to set 10% additional tariffs on US corn, wheat and sorghum on December 15.

 

US soybeans were not part of China's scheduled December 15 retaliatory tariffs. While a 25% tariff placed on US soybeans from July 2018 has stopped commercial buyers from purchasing the commodity, China's crushers returned to the US market after a trade truce between both countries' leaders were agreed in December 2018.

 

However, China imposed an additional 5% tariff in September 2019, though there were tariff exemptions on some US soybean imports.

 

Total US soybean purchases by China between January to October 2019 hit 11.3 million tonnes, a 31.8% fall compared to 2018. Since early November this year, the US has sold an additional 1.5 million tonnes of soybeans to Chinese crushers.

 

As for US swine, China imposed a 72% import levies after the addition of a 12% "most-favoured nation" tariff.

 

It's noted that these high duties were not amended as part of the "phase one" trade agreement, but China is projected to increase US meat imports into the country to supplement dwindling stocks caused by the African swine fever outbreak. Prices for pork have increased domestically in China, which has spilled over to increase meat prices globally.

  

-      Reuters