China imposes 178% duty on U.S. sorghum
According to Bloomberg, China has imposed temporary anti-dumping deposits on U.S. sorghum imports beginning April 18, adding to trade tensions between the world’s biggest economies.
According to Bloomberg, China has imposed temporary anti-dumping deposits on U.S. sorghum imports beginning April 18, adding to trade tensions between the world’s biggest economies. Imports will incur a 178.6% duty, China’s Ministry of Commerce said in a preliminary ruling on April 17. That’s in compliance with domestic law and World Trade Organization rules, Wang Hejun, chief of the trade remedy and investigation bureau at the ministry, said in a statement.
China began to investigate sorghum imports from the United States in early February, just after U.S. President Donald Trump imposed tariffs on imported solar panels and washing machines. Tensions between the countries have since escalated after Trump ordered levies on steel and aluminum, with plans for more on products from China. The Asian nation, the largest buyer of American sorghum, has responded with tariffs of its own and potentially more to come.
China imported about 4.8 million metric tons of sorghum from the United States in 2017, worth about $957 million, according to customs data. Purchases in the first two months of 2018 were 11% lower than a year earlier.
In response to the tariffs, U.S. Secretary of Agriculture Sonny Perdue issued the following statement: “The international grain market is about the freest market there is, and it is ludicrous to even mention ‘dumping,’ because China can buy product from anywhere they choose. This is clearly a political decision by the Chinese, and we reject their premise. Our sorghum producers are the most competitive in the world, and we do not believe there is any basis in fact for these actions. As we explore options, we are in communication with the American sorghum industry and stand united with them. The fact remains that China has engaged in unfair trade practices over decades and President Trump is correct in holding them accountable. We remain committed to protecting American agricultural producers in the face of retaliatory measures by the Chinese.”
The National Sorghum Producers (NSP) said it is “deeply disappointed in the preliminary antidumping determination issued today by China’s Ministry of Commerce. U.S. sorghum is not being dumped in China, and U.S. sorghum producers and exporters have not caused any injury to China’s sorghum industry.”
“Understanding the serious impact this preliminary decision will have on our farmers, NSP and our partners will continue to demonstrate U.S. sorghum farmers are not injuring China. We are evaluating all legal options moving forward,” wrote NSP in a statement on its website.