Strain Concerned About New Chinese Tariffs on US Ag Products

BATON ROUGE - China has increased tariffs on some American imports in response to this country slapping higher tariffs on products imported from  China. 

Louisiana Commissioner of Agriculture and Forestry Dr. Mike Strain says some of those US exports are agriculture-related. 

"Yellow soybeans, black soybeans, corn, cotton, sorghum, wheat, beef, pork and other things," said Strain. "Hopefully  there will be a lot of push to  try and deal with all these in a negotiated fashion."

Strain pointed out for the first 128 products the tariff has been established and "basically China will triple the amount on soybeans from 7% to 29% and in some cases to 40%.  (But) The tariffs being discussed for soybeans, corn and cotton have not been set."

China is the worlds largest soybean importer at 93 million metric tons a year.  That country produces about 14.5 million metric tons.  Nearly 2/3 of all US soybeans exports--or 62%--go to China.

"Best estimates from studies at Purdue University show a 10% tariff on US soybeans would reduce exports to China by 1/3.  Total US soybean exports could decline 18% and US production would drop by 8%.  At a 30% tariff US soybean exports to china would fall by 71%, US exports down 40% and US soybean production could decrease by 17%," said Strain.

Estimates are almost $2 billion in US ag exports could be lost if all the proposed tariffs go into effect.