China has officially announced it will impose an extra five percent tariff on U.S. soybeans starting on September 1.
They’ll also add another 10 percent in duties on other major U.S. crops grown by many American soybean farmers.
The latest details come after China vowed last week that it will retaliate if the U.S. goes through with its original plan to increase tariffs on Chinese goods on September 1.
ASA President Davie Stephens says, “ASA has strongly requested an end to the tariffs on U.S. beans for more than a year. This escalation will affect us not because of the increased tariff on our sales, which have been at a virtual standstill for months, but through time.”
He says the longevity of the situation means worsening circumstances for soy growers who still have unsold product from this past season and new crops in the ground this season.
Stephens adds that “prospects are narrowing even more now for sales to China, a market that soy growers have valued, nurtured, and respected for many years.”
ASA is asking both parties to step up and stop the tariffs and find a resolution that doesn’t target soy growers trapped in the middle.
Source: American Soybean Association