China to Impose 25% Duty on US Soya

China will impose a 25% tariff on 545 US products including soybeans nexth month, on July 6 in retaliation to a similar import tax hike by the United States government, spurring fears of a global trade war.  The tariffs on US$34 billion worth of goods also covers agricultural products such as corn, wheat, orange juice, beef, pork, poulty, lobster, salmon, reported The Globe and Mail on June 15.  The move came after the Trump administration announced a similar tariff hike on June 15 on US$34 billion worth of Chinese goods, also set to take effect on the same day as its Chinese counterpart.  
China’s increased taxes on agricultural and food products would have the biggest impact on US rural areas, which were staunch Trump supporters in the 2016 elections, said The Globe and Mail.  David Stephens, vice president at the American Soybean Association said the tariff could have devastating consequences on US farmers. “A recent study by Purdue University economists predicts the soybean exports to China could drop by a whopping 65% if it imposes a 25% tariff on US soya.  As a soya grower, I depend on trade with China – it imports roughly 60% of total US soybean exports,” said Stephen.