In retaliation to the Trump administration’s decision to impose tariffs on imported Chinese goods, the government of China has reportedly commenced an investigation against sorghum imports from the United States. Sources claim that the Chinese Ministry does not plan to levy any import duties on Sorghum with immediate effect till the outcomes of anti-dumping investigations are declared. China is the largest importer of soybeans & sorghum from the U.S. and the move to implement tariffs on these crops is certain to impact the revenue of farmers in the U.S., claim experts.
As per records, last year, the U.S. had shipped 4.8 million tons of Sorghum estimated at USD 1 billion to China, while soybean imports were valued at nearly USD 14 billion. Analysts familiar with the matter have reason to believe that the Chinese anti-dumping probe into U.S. crop imports is aimed at imposing new taxes on the crop production of the Republican-dominated states such as Kansas, Oklahoma, Texas, and Colorado. One of the key officials of China’s commerce ministry has stated that the U.S. administration offers sorghum at subsidized rates to China, thereby resulting in a rise in its imports affecting China sorghum market. The Chinese government also claims that China had purchased over 50% of sorghum from the U.S. post 2013.
As per industry analysts, the Chinese government’s self-initiated move to commence an anti-dumping enquiry against the goods imported from the U.S. is a vindictive reaction to the trade case launched by the U.S against the imports of aluminum alloy sheets from China in November last year. Reports have confirmed that it was the first such anti-subsidy & anti-dumping probe by the U.S against any country since the last many years. Apparently, the Chinese government had then raised strong objection against the move, stating that the decision could adversely affect the interests of both the nations. The incident further validates their current move of launching an anti-dumping probe against U.S. sorghum imports.