China and US battle continues
Now also levy on pork from the US?
China wants to tax more than 120 American products with an import tax. This is in response to the tariffs that the United States (US) will apply on steel and aluminum. A 25% levy on pork is also on that list, although this measure will not take effect immediately.
Co-author is Anne Jan Doorn
The Chinese retaliation came shortly after the US announced March 22 that it would impose tariffs on a range of Chinese steel products, from aerospace to machinery. In total, it concerns 128 American products with a combined export value of $60 billion. The tariffs will not all go into effect at the same time, because China has moderate counter reactions want to start.
Levy on pork
For example, China is still holding back the levy on pork, soy, fruit and ethanol. However, if the attitude of the US does not contain it, these tariffs will still be used. About 25% of China's pork imports come from the US. Conversely, the interests are greater; in January, the US shipped 44.824 tons of pork (over 20% of total exports) to China and Hong Kong. A Chinese import tariff on pork is very inopportune, given that the American pig population is growing rapidly.
China's countermeasure is bad news for 's stock WH Group, the largest meat processing company in the world; the value fell by 8%. The share price of Chinese meat companies rose explicitly. The price of Hunan New Wellfull, for example, increased by 10%, while the price of Muyuan Foods increased by about 5%. In any case, the fear of a trade war has struck financial markets. went worldwide the fairs Thursday, March 22 sharply down.
Europe locked out
The European Union will probably not get involved in the American steel war. US President Donald Trump decided to pause the introduction of tariffs for the countries with which the US is negotiating. In addition to the European Union, Argentina, Brazil, South Korea and Australia are also exempted from higher levies for the time being.
Sam Allen, CEO of John Deere, is concerned. Not only about the direct consequences of the tariffs on steel and aluminum, but especially also about the reaction from China with regard to the tariffs on various agricultural products† "If China stops buying soybeans from the US, it could be very bad for our customers."
Wouter Job
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