Lifting Tariffs on China
From the Ag Information Network, I’m Bob Larson. A 40-year inflation high has become a huge political problem for President Biden, so he has directed his team to look at lifting some tariffs on China as a possible relief valve.
American Farm Bureau senior director of government affairs Dave Salmonsen says despite earlier Phase I Chinese waivers for some U.S. farm goods, the tariff regime remains a threat …
SALMONSEN … “They could put some of these high tariffs back on U.S. products anytime. And not all tariffs, all U.S. ag products to China have been granted waivers – think about ethanol, dry distillers’ grains – there are still some things that face high tariffs. And we haven't got much in the way of sales to China because of that.”
Salmonsen would like to see tariff relief, which could also help with inflation …
SALMONSEN … “You always have to remember who pays the tariffs. Tariffs are levied on the product as it enters the country, so it's the importers who pay the tariffs, and then they pass on those higher costs to the consumers. So, the only thought is, yeah, get rid of the tariffs. Economists have estimated would have some impact on inflation.”
Among those imports are steel and aluminum used in farm equipment …
SALMONSEN … “Companies and farmers are complaining about the high cost of materials. Some of that's traced back to the higher costs of imported steel.”
Commerce Secretary Gina Raimondo told CNN the administration has decided to keep some of those tariffs to protect U.S. workers and the steel industry.
