Lower tariffs remain too costly for soybeans and other US sectors, Congress hears
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.
After weekend talks in Switzerland, the two nations
agreed to reduce tariffs temporarily until they reach a more substantive deal, with US tariffs on Chinese imports lowered to 30 per cent, from 145 per cent, and Chinese tariffs on US imports cut to 10 per cent, from 125 per cent.
'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.
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.
The US sells more soybeans to China, by value, than any other single product, even after President Donald Trump, then in his first term, launched his first trade war against the country in 2018, which drastically reduced US soybean exports.
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