Tuesday, April 17, 2018

CHINA SLAPS 178.6% TARIFF ON USA SORGHUM

   In response to reports that the US is ramping up the "third front" in its trade spat with China by authorizing another investigation under Section 301 of the Trade Act of 1974 - this time, aimed at obstacles that prevent US tech firms from competing in cloud computing and other high-tech industries - China has, as we anticipated, retaliated by slapping tariffs on US sorghum imports.
   Yesterday, the US also revealed that it would stop US tech firms from selling components to Chinese telecom giant ZTE after accusing the company of lying during settlement negotiations - eliciting an angry response from Chinese officials, who urged US lawmakers to create a "fair, just and stable legal and policy environment" for Chinese companies, according to Xinhua.
   Like Chinese tariffs on US pork products that were imposed earlier this month, the sorghum tariffs aren't merely a threat: Rather, China says they will take effect on Wednesday, per Bloomberg.
  US sorghum imports will incur a 178.6% tariff, China’s Ministry of Commerce said in a preliminary ruling on Tuesday.

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