Sharp cut in Chinese imports of agro products angers US farmers
05 May 2018
The trade spat between the US and China has resulted in a sharp cut in exports of farm produce from the US, as Chinese importers cancel their orders, especially for soybeans, corn, pork and other commodities.
According to the US Department of Agriculture, Chinese imports of a range of agricultural products have declined sharply since April when the country imposed tariffs on American agricultural products.
This was in response to the move by the American President Donald Trump’s administration to propose tariffs on $50 billion worth of imports by the US from China. Following the US move, China’s Ministry of Commerce slapped duties on more than 100 US products.
China is the second-biggest market for US agricultural products, buying more than $20 billion worth of products. Reacting swiftly to Trump’s move to impose new tariffs on Chinese exports to the US, China slapped hefty taxes on American supplies.
Traders have also cancelled purchases of soybeans, corn and a host of other products from the US. Worried about the impact it would have on their exports to China, a high-powered delegation including US Treasury Secretary Steven Mnuchin, and Trade Representative Robert Lighthizer was despatched to Beijing to sort out issues.