agriculture exports

Groups Respond to Proposed Chinese Tariff Announcement

Dan Exports/Imports, Industry News Release, Trade

chinese tariffFrom American Farm Bureau Federation (AFBF)

The following statement on the Chinese tariff announcement may be attributed to American Farm Bureau Federation President Zippy Duvall:

“Farmers and ranchers are, by necessity, patient and optimistic. We know markets ebb and flow. But China’s threatened retaliation against last night’s U.S. tariff proposal is testing both the patience and optimism of families who are facing the worst agricultural economy in 16 years. This has to stop.

“Growing trade disputes have placed farmers and ranchers in a precarious position. We have bills to pay and debts we must settle, and cannot afford to lose any market, much less one as important as China’s. We urge the United States and China to return to negotiations and produce an agreement that serves the interests of the world’s two largest economies.”


From Alabama Farmers Federation (ALFA)

Alabama farmers expressed concern about the impact of Chinese tariffs on commodity prices but remained optimistic trade negotiations could produce long-term benefits for the United States.

Alabama Farmers Federation President Jimmy Parnell said farmers are watching the situation closely as planting season begins.

“Farmers are understandably concerned about the drop in commodity prices, but we’re optimistic America and China will ultimately reach an agreement before additional tariffs take effect,” Parnell said. “We are communicating with Congress and President Trump’s administration about the effect these tariffs would have on Alabama farmers. We encourage them to reach a deal that’s good for all sectors of the U.S. economy.”

U.S. import duties on Chinese aluminum and steel were announced last month. In return, China placed tariffs on U.S. pork, tree nuts and other products, which went into effect Monday. Last night, China announced plans to levy a 25 percent tariff on $50 billion of additional U.S. goods, including soybeans, corn, beef, frozen orange juice and whiskey. China’s Commerce Ministry said the tariffs would be imposed on 106 products in 14 categories, but the implementation date will depend on when the U.S. government imposes tariffs on Chinese products.

Parnell said it’s not surprising China is planning to retaliate against agriculture. Farm and food exports are the bright spot in U.S. trade, generating a $20 billion trade surplus with other countries.


From American Soybean Association (ASA), U.S. Soybean Export Council (USSEC), United Soybean Board (USB)

In response to the announcement that China is proposing to tax U.S. soybean imports by 25 percent, according to the Chinese Ministry of Commerce, the American Soybean Association (ASA), the U.S. Soybean Export Council (USSEC) and the United Soybean Board (USB) release the following statements.

“ASA has consistently raised our significant concern since the prospect for tariffs was raised. Now this is no longer a hypothetical, and a 25 percent tariff on U.S. soybeans into China will have a devastating effect on every soybean farmer in America,” says ASA President John Heisdorffer. “We believe strongly that soy can help reduce our trade deficit by increasing competitiveness, and we will continue to work with our partners at USB and USSEC to show how that’s possible.”

“The U.S. Soy industry has a 36-year track record of actively investing and partnering in programs that support China’s goals of achieving sustainable food security and food safety,” says USSEC Chair Derek Haigwood, a soybean farmer from Newport, Arkansas. “U.S. soybean farmers and exporters should know that USSEC is continuing to work on their behalf to build global demand and expand market access for U.S. Soy products in China and other markets.”

“China announced a proposed 25 percent tax on U.S. soy imports into China,” says USB Chair Lewis Bainbridge, a soybean farmer from Ethan, South Dakota. “I want to assure farmers that their soy checkoff will continue to invest in new market opportunities to build a portfolio of global demand for U.S. soy products.”  

The U.S. Soybean Export Council connects U.S. soybean farmers with opportunities to improve human nutrition, livestock production and aquaculture. This mission is accomplished with a science-based technical foundation and a global network of partnerships including soybean farmers, exporters, agribusiness and agricultural organizations, researchers and government agencies. USSEC operates internationally and works with aquaculture programs in different nations to help ensure sustainability and profitability for industry producers. USSEC programs are partially funded by the United Soybean Board.

USB’s 73 farmer-directors work on behalf of all U.S. soybean farmers to achieve maximum value for their soy checkoff investments. These volunteers invest and leverage checkoff funds in programs and partnerships to drive soybean innovation beyond the bushel and increase preference for U.S. soy. That preference is based on U.S. soybean meal and oil quality and the sustainability of U.S. soybean farmers. As stipulated in the federal Soybean Promotion, Research and Consumer Information Act, the USDA Agricultural Marketing Service has oversight responsibilities for USB and the soy checkoff.

ASA represents all U.S. soybean farmers on domestic and international issues of importance to the soybean industry. ASA’s advocacy efforts are made possible through voluntary farmer membership by farmers in 30 states where soybeans are grown. For more information on ASA, visit www.soygrowers.com.


From National Cotton Council (NCC)

The National Cotton Council is concerned that China’s announcement of significantly higher proposed tariffs on U.S. raw cotton shipped to that country would significantly harm the economic health of the U.S. cotton industry.

For the current 2017 crop year, China stands as the second largest export market with purchases of approximately 2.5 million bales of U.S. cotton.

“I cannot overstate the importance of China’s market to U.S. cotton farmers and the importance of U.S. cotton in meeting the needs of China’s textile industry,” NCC Chairman Ron Craft said. “The cotton industries of the United States and China enjoy a healthy, mutually beneficial relationship.”

According to the USDA Foreign Agriculture Service GAIN Report, cotton has been listed among multiple U.S. agricultural products that could potentially be hit with higher tariffs from China — specifically an in-quota tariff that would increase from one percent to 26 percent. Following the announcement, the cotton market reacted accordingly – almost limit down on nearby contracts.

The GAIN Report noted that China’s proposal of retaliatory tariffs on selected U.S. agricultural products is in response to the recent U.S. proposed tariffs on Chinese imports resulting from the Section 301 investigation into the forced transfer of U.S. technology and intellectual property.

Craft said the NCC strongly encourages the two governments to engage in immediate discussions “that can resolve trade tensions and preserve this long-term collaborative relationship. The U.S. cotton industry stands ready to assist the U.S. government and our trading partners in China to find a resolution to this damaging trade dispute.”


From National Farmers Union

In the latest of a series of tariff threats between the United States and China, the Chinese Ministry of Commerce (MOC) announced plans to impose a 25 percent tariff on $50 billion worth of U.S. goods, including soybeans, corn, beef, and other agricultural products.

National Farmers Union (NFU), a family farmer-led organization who supports aggressive efforts to fight unfair trade practices, is urging the Trump Administration to work with Congress to develop a Farm Bill that protects family farmers from harm as a result of retaliatory tariffs. NFU President Roger Johnson issued the following statement in response to the announcement:

“These tit-for-tat tariff threats were expected from the moment the administration first engaged China. The President and his administration continue to claim there won’t be a ‘trade war,’ and that agriculture won’t feel the brunt of retaliation, but the daily news announcements indicate otherwise.

“As trade tensions escalate, Farmers Union is increasingly concerned that there is not a plan in place to protect our family farmers and ranchers who are always the first to bear the brunt of retaliatory tariffs. Farmers are dealing with severely depressed farm prices and a 12-year low in farm income, and a trade war will undoubtedly make these conditions worse.

“We urge the President and the administration to immediately engage with the Senate and House Agriculture Committees to develop a Farm Bill that will protect farmers and ranchers from the collateral damage that we are seeing as a result of these actions.”