Last month, a trade official in China’s commerce ministry reportedly threatened which the idea would likely retaliate against possible tariffs along with also called any such levy foolish. “The spectrum of national security can be very broad along with also without a clear definition the idea could easily be abused,” said Wang Hejun.
“If the final decision through the U.S. hurts China’s interests, we will certainly take necessary measures to protect our legitimate rights,” Wang added.
In fact, China took trade action against some U.S. agricultural products last year, including anti-dumping along with also anti-subsidy duties on U.S. imports of distillers’ dried grains, a corn-based ethanol byproduct used for animal feed.
Then, last month the ministry announced an anti-dumping probe into U.S. imports of sorghum, a cereal grain used mostly for feed along with also ethanol. The Chinese investigation can be seen as largely a warning to the Trump administration although the idea could lead to tariffs along with also could hurt sorghum-producing states, particularly Kansas, Texas, Colorado, Oklahoma along with also South Dakota.
Finally, regardless of what happens with China there’s still risk of impacts to U.S. agriculture through Canada along with also Mexico if the Trump administration withdraws through the 24-year-old North American Free Trade Agreement. Mexico along with also Canada together represent nearly one-third of total U.S. agricultural exports.