Formazor

Two Nations Move Closer to a Trade War

Today, The American Feed Industry Association has updated its members on the US/ China potential trade war.

In part, AFIA's International Trade and Pet Food Committee stated in mid June, the US announced its intent to impose two sets of tariffs on $50 billion of Chinese goods in response to China's unfair trade practices related to the "forced transfer of American technology and intellectual property theft" pursuant to Section 301 of the Trade Act of 1974. China has since announced retaliatory 25% tariffs on a selection of U.S. goods. Subsequently, in response, President Trump ordered the US Trade Representatives to identify $200 billion worth of Chinese goods for an additional 10% tariffs.

The first set of US proposed tariffs on Chinese goods are set to take effect on July 6th.

China's first list of tariffs on US goods will also be implemented on July 6th.

Pet food is listed on the Chinese list of US products that will be subject to 25% tariff. The tariff is currently 4%.

Import duty will also be raised on US soybeans.

It is hoped that the US administration and the Chinese government will be able to come to a favorable settlement in time to avoid these tariffs.