U.S. Grains industry watches for retaliation following new tariffs
(Posted on 08/06/18)
As new tariffs on steel and aluminum imports go into effect for some of the United States’ closest allies, the U.S. grains industry is watching closely for retaliations that impact sales of U.S. corn, sorghum, barley and their related products, including ethanol and distiller’s dried grains with solubles (DDGS).
U.S. Commerce Secretary Wilbur Ross confirmed last week that discussions to continue extensions of tariff waivers for Mexico, Canada and the European Union – three of the largest markets for U.S. grains and related products – had failed. As of 1 June, they will join a large group of countries facing new tariffs of 10 percent on aluminum imports and 25 percent on steel imports, applied under Section 232 of U.S. trade law.
It appeared neither Mexico nor Canada had added feed grains or ethanol to their initial retaliation lists, though it is expected those lists will evolve as trade tensions ramp up. The European Union previously announced its countermeasures would include a 25 percent tariff on both U.S. feed and sweet corn, which is largely blocked due to biotechnology concerns. Several other U.S. agricultural products were implicated, including some pork products going to Mexico and a variety of specialty crops. Yogurt and various prepared foods were among the agricultural and food products targeted by Canada.
“Based on information we have heard from our customers and past experience, we have every reason to believe U.S. agriculture, including the products we represent, will be among the most vulnerable to countermeasures from our trading partners,” said U.S. Grains Council President and CEO Tom Sleight in a statement.
“We had strong hopes this situation would be averted permanently, but it now appears we need to prepare for retaliation and its direct impact U.S. farmers. Our global staff is doing this to the best of their abilities as we continue to follow new developments.”
Many countries are already facing the new tariffs, which initially went into effect in March. Those include China, which on April 2 counter-imposed tariffs of 15 percent on imported U.S. ethanol and 25 percent on imported U.S. pork. Japan, Turkey, Russia and India also face the tariffs and have said they would retaliate but have not issued lists or their lists did not include U.S. grain products. Quota agreements on steel and aluminum to stave off tariffs have been reached with South Korea, Australia, Argentina and, tentatively, Brazil.
The Section 232 tariffs are in addition to tariffs proposed under Section 301 of U.S. trade law, particularly targeted at China, and a plethora of other trade policy issues, negotiations and concerns.
Latest News
NZAS reaches extension deal with Meridian
(Posted on 14/01/21)Rio Tinto has reached an agreement on a new electricity agreement with Meridian Energy that allows New... Read more
AISI updates six cold-formed steel design standards
(Posted on 10/01/21)The American Iron and Steel Institute (AISI) has updated six cold-formed steel design standards.AISI... Read more
NGFA announces Seyfert as new President and CEO
(Posted on 05/01/21)The National Grain and Feed Association (NGFA) in the USA has announced that Michael J. Seyfert will... Read more
Joint statement from PKKP and Rio Tinto
(Posted on 28/12/20)Rio Tinto and the Puutu Kunti Kurrama and Pinikura people (PKKP) confirm they have taken initial steps... Read more
2021 Coal demand rebound set to be short-lived
(Posted on 22/12/20)A global economic recovery in 2021 is expected to drive a short-lived rebound in coal demand following... Read more
NGFA commends Congress for waterways provisions
(Posted on 22/12/20)The National Grain and Feed Association (NGFA) in the USA has commended Congress for including key inland... Read more
Rio Tinto appoints Stausholm as CEO
(Posted on 17/12/20)Rio Tinto has appointed Jakob Stausholm as chief executive, effective 1 January 2021. Since joining... Read more
Rusal a preferred supplier to Hyundai Sungwoo
(Posted on 17/12/20)RUSAL, a leading global aluminium producer, is pleased to announce that Hyundai Sungwoo Holdings Co,... Read more
Rio Tinto declares maiden Ore Reserve at Jadar
(Posted on 10/12/20)Rio Tinto has disclosed to the Australian Securities Exchange (ASX) a maiden Ore Reserve and updated... Read more
Shell wins BHP iron ore vessels LNG supply agreement
(Posted on 06/12/20)BHP has awarded its first LNG supply agreement for five LNG-fuelled Newcastlemax bulk carriers, which... Read more
