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China suspends tariff exemption for U.S. ag exports

An ag economist says China’s suspension of U.S. tariff exemptions could impact the future of ag exports.

David Widmar with Agricultural Economic Insights says it has helped ag goods remain globally competitive. 

“Some of those exemptions go all the way back to the first trade war and that phase one trade agreement that we had in place,” he says. “China was exempting those tariffs that were on the books. Now, if a producer or a buyer  in China is looking at buying a shipment of soybeans, they have to start planning on there being tariffs.”

He tells Brownfield soybean and beef exports to China have grown since 2018.

“Those are the two categories that I think are going to hit US producers the most over the next few months,” he says. “Especially if we don’t see progress towards those exemptions going back in place or removing those tariff barriers altogether.”

Widmar says China will no longer accept tariff exemptions after August 1st, and all previously approved exemptions will only be valid until September 14th. 

AUDIO: David Widmar, Agricultural Economic Insights