Feb 10, 2020China to reduce tariffs on U.S. potatoes
China announced Feb. 6 it will reduce retaliatory tariffs imposed on $75 billion worth of U.S. products that were implemented on Sept. 1, 2019.
This follows similar tariffs concessions from the U.S. as part of the Phase One trade deal between the countries. Both the Chinese and U.S. tariff reductions will take effect from Feb. 14, 2020.
“It is positive that efforts are being made to step back from the retaliatory tariffs we have seen over the past couple of years,” said Kam Quarles, NPC CEO. “We need to focus on reducing barriers to entry into China through competitive tariff rates and durable market access agreements for all U.S. potato exports.”
As a result of this development, tariffs on U.S. potatoes and potato products will be reduced to:
- 40.5% on seed potatoes (from 43%)
- 43% on fresh potatoes (from 48%)
- 28% on frozen potatoes (from 33%)
- 27.5% on potato flour, meal, and powder (from 30%)
At this time, tariffs on frozen fries and other dehy lines will not undergo tariff reductions.
USDA projects 1.4% increase in farm income
Farm income this year will rise by 1.4%, compared to 2019, to $96.7 billion, USDA projected this week. The report — USDA’s first of three annual updates on the farm economy — is based on an expected increase in exports due to the recent trade deals signed by President Trump, including the revamped USMCA trade pact and agreements with China and Japan. In particular, China has agreed to increase purchases of American farm goods by $32 billion compared to two years ago.
USDA also forecasted that farmers will receive fewer direct payments this year, $15 billion compared to $23.7 billion in 2019. The third and final round of USDA’s 2019 Market Facilitation Program payments to assist growers suffering from trade retaliation by China and other countries are on their way.
— National Potato Council
