China imposing new tariffs on US poultry
The Chinese government has announcement that it will impose up to 31% duties on imports of US poultry, but analysts say this will cause little worry.
"We believe the practical effect of this new round of tariffs will be minimal," said JP Morgan analyst Ken Goldman. "In speaking with US chicken companies this morning, they reiterated what USDA export data have suggested, that very little chicken has been going directly to China from the US anyway. So, whether the tariff is 1% or 1000% is not particularly relevant at this point."
Processors also expected a higher tariff to come, Goldman added.
In February China began imposing duties on imports of US chicken in the form of anti-dumping duties ranging from 43-105% of value. The move followed Beijing found that US chicken producers sold at below-market prices and receive subsidies for feed grains.
Importers will now have to pay the new anti-subsidy tariff in addition to the anti-dumping duties. Pilgrim's Pride product will incur a 4.9% anti-subsidy duty and Tyson Foods imports face an 11.2% duty, said China's Ministry of Commerce.
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