China has introduced new tariffs on potato products from the United States. These levies are a response to previous tariffs from the United States. What does this mean for the global chips market?
These new import tariffs are reportedly being imposed in 2 phases, says Kam Quarles, the CEO of the National Potato Council (NPC). From the start of September, there will be a 10% levy on, among other things, potatoes and seed potatoes, and an additional 15% levy for dried potato products from December 10. That's what Quarles tells Potato News Today.
French fries from the United States will be subject to an additional 5% tax; there is already a 10% levy on American fries. Tensions between China and the United States previously known that the Chinese levies on European fries will be reduced from 13% to 5%. As a result, European French fries exports to China could grow.
Greater opportunities for export
The new trade tariffs have increased the opportunities for European French fries exports to China. The United States is currently the second largest supplier of chips to China after Europe. Previously, these 2 positions were reversed, although it must be said that the export of baked goods from Europe to China has fallen by 28% in recent months. This has to do with the fact that European fries relatively expensive .
According to various insiders, these import tariffs from China offer opportunities for the export of European chips in the short term. It is said that the political disruptions in world trade will ultimately only lead to losers.