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On Jun. 16, 2018, China Ministry of Commerce announced the pending increase in tariffs on US products, which will impact 34 billion dollars worth of goods. 545 items will have tariffs increased by 25% starting on July 6th. In addition it is proposed that items such as chemicals, healthcare equipment and energy products will also be subject to an increase in tariffs of 25%, impacting a further 16 billion dollars of US exports to China. This policy is a response to the US tariff increase on Chinese products which began on July. 6.
Agriculture and aquatic products account for the majority of commodities subject to the increase and include:
Meat and meat products
Poultry products
Aquatic products
Dairy products
Fresh or frozen vegetables
Fresh or dried fruit
Grain and grain products
Canned food
Pet food
*Please refer to the reference link for the detailed food items
The China-US tariff war began in earnest in March this year and will inevitably impact bilateral trade going forward. For example, the tariff increase on dairy products may prompt domestic enterprises to turn to Australian or European dairy manufacturers. Please click here for the detailed analysis on the impact of the China-US trade war on China’s food sector.
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