The Chinese tariffs on US apples, pears, cherries and US commodities will increase by an additional 10% on September 1st.
The August 23 move is again ratcheting up the more than year-long trade fight between China and the US. In response to China’s decision, the US announced planned tariff increases on a variety of Chinese goods, including vegetables, apples and mushrooms.
US apples, pears and cherries are all subject to an additional 10% tariffs starting September 1, said Todd Fryhover, president of the Washington Apple Commission.
That will brings the total retaliatory tariffs on US fruit to 50% since last year, he said. Combined with the existing standard tariff of 10%, imports of US fruit must pay 60% of the value of the fruit to bring it into China.
“We did talk to our representatives who went out and called customers in China, specifically retail accounts and importers, and their comment was that they expect to continue to buy till it becomes unprofitable,” he said August 26. With the end of one season and the start of another, Fryhover said it is hard to predict what will happen next, but the high tariff will be a heavy burden to bear.
For the 2018-19 marketing season, Washington apple exports to China are off 22.1% compared with the previous year, Fryhover said. India’s retaliatory tariff of 20%, added its existing tariff of 50%, will also limit export sales there this season, he added.
US apple exports to India in June this year totaled 1,427 tons, down from 15,800 tons in June 2018. Add to that the potential for an economic slowdown worldwide, and Fryhover said finding export sale gains won’t be easy.
Potatoes and potato products
Among the new tariffs mentioned last Friday were tariffs on potatoes and potato products as well.
“We have been urging all sides to come to the negotiating table rather than continue ratcheting up the pressure. A reasonable agreement can be achieved, but talks need to replace threats in the very near future,” said Kam Quarles, National Potato Council (NPC) CEO.
According to Quarles, the new tariffs will be imposed in two phases; beginning September 1st and December 15th;
- September 1st: An additional 10% on US fresh potatoes, seed potatoes, frozen potatoes, potato flour, meal and powder.
December 15th: An additional 10% tariff on US potato flakes, granules and pellets, and other dehydrated potatoes.
According to agweb.com¸ US frozen fries will be subject to an additional 5% tariff.
