China placed a 25 percent retaliatory tariff on multiple U.S. goods, including sorghum. The retaliatory tariff also applies to U.S. soybeans, cotton, wheat, vegetables, beef, pork and others and will go into effect on July 6. This action was in response to the U.S. issuing a 25 percent tariff earlier today on 1,102 Chinese goods.
Today's tariff announcement comes a month after China terminated anti-dumping and countervailing duty investigations into U.S. sorghum, which ended the 178.6 percent duty. The newly enforced 25 percent tariff will bring higher prices for Chinese consumers who purchase over half of U.S. sorghum exports. National Sorghum Producers Chairman and Nebraska farmer Don Bloss issued the following statement:
"National Sorghum Producers, alongside our producers, stakeholders and partners, have already seen the market uncertainty and price fluctuations that occur when China retaliates on U.S. goods. We urge President Trump and the Administration to move forward with constructive trade negotiations that will end tariffs on U.S. agriculture, especially during times of existing economic stress.
"We understand the grave impact tariff decisions can inflict on producers. American farmers depend on trade with China, and these tariffs will have devastating effects on U.S. agriculture. We greatly value our business relationship with Chinese buyers and hope to see this win-win relationship move forward. We have witnessed the Administration's efforts in positive trade negations in the past that lifted sanctions on U.S. sorghum and hope to see similar efforts going forward.
"National Sorghum Producers will continue to work with and encourage officials to achieve long-term trade solutions with China. Protecting our markets remains the No. 1 priority for U.S. sorghum farmers and the agriculture industry."
Source: National Sorghum Producers