Lower tariffs remain too costly for soybeans and other US sectors, Congress hears
Soybeans, leading US export to China, have yet to recover from President Trump’s first-term trade war, industry chief tells senators
The costs of broad-based tariffs on Chinese imports remain too high even if the tariff reduction deal between Washington and Beijing lasts beyond 90 days, the head of a soybean industry group told US senators on Wednesday.
“While this reduction is a step in the right direction, US soybeans are still facing a duty into our largest export market nearly equal to the height of the 2018 trade war,” Caleb Ragland, president of the American Soybean Association, told a hearing of the Senate Finance Committee.
In March, after US President Donald Trump announced two rounds of 10 per cent tariffs on Chinese goods but before his so-called “reciprocal” tariffs in April, China imposed specific tariffs on US soybeans.
According to Ragland, US soybeans exported to China now face levies of 34 per cent, reflecting Beijing’s retaliatory duties, the most favoured nation rate, and China’s value added tax.
While US soybean farmers have searched for years for alternatives to the Chinese market, Ragland said it could not be completely replaced given the “sheer volume” of its demand.