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August 23, 2019

China Announces New Tariff Increases, Trump Orders Businesses to Pursue Other Markets

Today, the Chinese government announced plans to increase tariffs by 5 to 10 percent on a $75 billion worth of U.S. exports – including virtually every type of agricultural commodity – on September 1, 2019. This increase will be added on top of the 15 percent increase (imposed spring 2018) and 25 percent increase (imposed summer 2018) that are already in place. The following are included in the new retaliation list:

  • TREE NUTS: in-shell and shelled almonds; in-shell and shelled fresh or dried walnuts; in-shell and shelled pistachios; fresh or dried pecans
  • CITRUS: fresh or dried oranges; other mandarins; fresh or dried grapefruits; fresh or dried lemons and limes; other fresh or dried citrus fruit
  • STONE FRUIT: fresh apricots; fresh sour cherries; fresh other cherries; fresh plums; fresh peaches, including nectarines
  • OTHER FRUITS: fresh grapes; fresh or dried figs; fresh or dried dates; fresh or dried avocados; fresh berries; melons
  • VEGETABLES: fresh or chilled cauliflower and headed broccoli; fresh or chilled Brussel sprouts; fresh or chilled cabbages; fresh or chilled lettuce; fresh or chilled carrots and turnips; fresh or chilled cucumbers; fresh or chilled asparagus; fresh or chilled aubergines; fresh or chilled celery; fresh or chilled spinach; fresh or chilled globe artichokes; fresh or chilled olives; other mixtures of vegetables

This is in response to the U.S. government’s earlier declaration on August 15 to increase tariffs on $300 billion worth of Chinese exports on the same day. Almost immediately following the Chinese announcement, President Trump publicly stated via Twitter that “American companies are hereby ordered to immediately start looking for an alternative to China…”, with response on the tariff increases specifically coming soon after. Negotiations between the two nations to resolve the ongoing trade conflict and lift tariffs have stalled, with scheduled talks next month now in doubt of actually taking place.

Western Growers continues to closely track the tariff rate fluctuations and is available to help answer questions. Please contact Tracey Chow at [email protected] or 202-296-0191 for more information.