Sorghum falls under Chinese retaliatory tariff

Sorghum falls under Chinese retaliatory tariff

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LUBBOCK, Texas -

The trade war between China and the U.S. is going to a new level as China places a 25% retaliatory tariff on some U.S. goods. It specifically targets several sectors of the agriculture industry. China's new import tax follows the Trump administration's 25% hike on Chinese goods. The new tariffs are designed to punish America's food, seed, and fiber producers.

The new import duties will bring higher prices for Chinese consumers who purchase more than half of the sorghum the U.S. produces.

"If we are at higher cost, than others around the world will likely move in and take our place so that is our biggest concern right now," said Tim Lust, CEO of the National Sorghum Producers. "Is what that impact is on trade long-term, as you allow your competitors to get into a market, it makes that much more difficult to keep that." 

State senator Charles Perry said in the long term the U.S. is on the right path, it'll re-establish the nations foot print in the global market. 

"For far too long have we allowed those to dictate to us what the policy would be and they cannot afford to go without their products moving anymore than we can have our products," said Perry. "So in the interim in the short term we are going to feel some pain, if it comes to fruition and in the long-term we are going to have a better trade policy and a better market I believe for our local Ag producers."

Lust said representatives of his organization have voiced their concerns with U.S legislators and the USDA and are hopeful both governments will move forward with the proper trade negotiations to achieve a long-term solution. 

Late Monday evening, the President ordered the US Trade Representative to prepare more tariffs in response; the 10 percent duties would target about $200 billion in Chinese imports.

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