The U.S.-China trade war has officially begun, yet China’s agricultural sector is poised to reap significant benefits!

On May 9, 2019, the Office of the United States Trade Representative (USTR) issued a notice in the Federal Register announcing that, effective 12:01 a.m. EDT on May 10, 2019, the tariff rate on products covered by Section 301 measures—specifically, those subject to duties imposed starting September 24, 2018, as listed in the $200 billion tariff schedule—would be increased from 10% to 25%. The USTR will subsequently publish procedures for submitting requests to exclude specific products.

　　This round of additional tariffs targets the $200 billion worth of imports from China that were covered by the Section 301 measures implemented in 2018. On July 10, 2018, the U.S. Trade Representative (USTR) released the original $200-billion list and announced that a 10% tariff would be imposed on the products included therein. The list encompasses 6,031 tariff lines, spanning both high‑end manufacturing sectors—such as semiconductors, chemicals, pharmaceuticals, and electrical machinery—and lower‑end industries like wood products, as well as consumer goods including food and furniture.

　　And today, at 8:00 p.m. on May 13, the Customs Tariff Commission of the State Council also issued Announcement No. 3 of 2019. In accordance with the Foreign Trade Law of the People’s Republic of China, the Regulations on Import and Export Tariffs of the People’s Republic of China, and other relevant laws and regulations, as well as the fundamental principles of international law, the Customs Tariff Commission of the State Council has decided to raise the additional tariff rates on certain imported goods originating in the United States, effective from 00:00 hours on June 1, 2019. The relevant matters are hereby announced as follows:

　　For certain products listed in the “Announcement of the Customs Tariff Commission of the State Council on Imposing Additional Tariffs on Approximately US$60 Billion Worth of Imported Goods Originating in the United States” (Tariff Commission Announcement [2018] No. 8), the additional tariff rates have been increased and shall be applied in accordance with the rates specified in the “Announcement of the Customs Tariff Commission of the State Council on Imposing Additional Tariffs on Certain Imported Goods Originating in the United States (Second Batch)” (Tariff Commission Announcement [2018] No. 6). Specifically: an additional tariff of 25% shall be imposed on the 2,493 tariff lines listed in Annex I; an additional tariff of 20% shall be imposed on the 1,078 tariff lines listed in Annex II; and an additional tariff of 10% shall be imposed on the 974 tariff lines listed in Annex III. For the 595 tariff lines listed in Annex IV, the existing additional tariff of 5% shall remain in effect.

　　For the vast majority of agricultural workers, this announcement signals that the China–U.S. trade war has entered a phase of full-scale confrontation. The Americans still refuse to let China pursue its socialist development without obstacles. However, I would like to say: no matter how formidable President Trump may be in one country, how unreasonable the demands of another may seem, or how rampant unilateral protectionism might become, our wise government will surely strike back.

　　For farmers and agribusiness professionals who continue to pursue reform and opening-up in 2019, this is a tremendous boon! Why is that? Let’s take a look:

　　I. Agricultural products subject to an additional 25% tariff: meat, fresh flowers, oranges, melons, coffee, tea, fruit juices, various vegetable oils, alcoholic beverages, ores, borates, urea, potassium chloride, potassium sulfate, ammonium dihydrogen phosphate, NPK compound fertilizers (including slow- and controlled-release fertilizers), fertilizers with a gross weight not exceeding 10 kilograms, and retail-packaged insecticides, fungicides, herbicides, agricultural or horticultural sprayers, planters, Fertilizer Fertilizer applicators, other harvesters

　　II. Agricultural products subject to an additional 20% tariff: strawberries, Peanut , grape juice, certain alcoholic beverages, potassium phosphates (including monopotassium phosphate), other phosphates, and other agricultural or horticultural sprayers, spreaders, seeders, combine harvesters, potato harvesters, fruit grading machines, and fungicides packaged for non-retail use.

　　III. Agricultural products subject to an additional 10% tariff: potatoes, sweet… Corn , American ginseng, beetroot, other orange juices, tomato juice, ammonium sulfate, diammonium hydrogen phosphate (commonly known as DAP), organic surfactants, herbicides in non-retail packaging, plant growth regulators in non-retail packaging, fertilizer applicators, lawn mowers, and vegetable-processing machinery.

　　IV. Agricultural products subject to an additional 5% tariff: other borates, organic-inorganic compound fertilizers, unprocessed organic fertilizers, other mineral potassium fertilizers and chemical potassium fertilizers, other nitrogen–phosphorus binary fertilizers, insecticides in non-retail packaging, plant growth regulators, rodenticides, other agricultural or horticultural sprayers, lawn mowers, park mowers, and sugarcane harvesters. Cotton Harvester

　　As evidenced by the four categories of goods listed above, China now imposes hefty tariffs on the substantial annual imports of a wide range of foreign fruits, fruit juices, and other agricultural products from the United States. This signals the end of the golden age for U.S. fruit producers, while domestic fruit production is set to gain momentum. At the very least, prices for domestically grown apples, oranges, grapes, and cherries are likely to rise—particularly for apples and citrus fruits—thereby directly boosting the adoption of advanced fertilization and crop‑protection practices across China’s fruit industry. Chinese farmers stand to benefit, with increased incomes and greater prosperity.

　　It can be said that, starting June 1, fertilizers imported from the United States, Pesticide 、 Agricultural machinery Equipment and harvesters are set to see significant price hikes, with increases ranging from 5% to 25%, particularly for fertilizers and… Pesticide It’s basically a 25% increase!

Source: Internet Agricultural Supplies Professionals Author: Internet Agricultural Supplies Professional Editor: xwbj3