At 12:01 a.m. on Friday, the United States increased tariffs from 10% to 25% on $200 billion worth of Chinese products. The increase in these particular tariffs was delayed twice since the investigation determination was published in the Federal Register on Sept. 21, 2018. The rate of additional duties in effect since Sept. 24, 2018, was 10%. Some of the impacts of the tariffs have been harder to calculate on Utah farmers & ranchers, because of the existing poor farm economy. Others to ag sectors like hay, mink, grains, etc., have been more pronounced.
Under Annex B of the Sept. 21 notice, the rate of additional duty was set to increase to 25% on Jan. 1, but on Dec. 19, the Office of the U.S. Trade Representative published a new directive in the Federal Register, postponing the increase in the rate of the additional duty to 25% until March 2. After considerable negotiation between the United States and China, on Feb. 24, the president directed the Office of the U.S. Trade Representative to again postpone the increase in tariffs. The bump from 10% to 25% on May 10 ends the speculation as to when/if the increase in tariffs would occur.
Dave Salmonsen, senior director of congressional relations at AFBF, discussed how the tariffs may play out in a recent RFD-TV story. Watch the clip. Also, a Market Intel update on the situation can also be access from the American Farm Bureau.