On the occasion of making a promise of “the US no longer imposes new tariffs on Chinese products”, the US side disregarded the “constructive” progress made by the two sides in the 12th round of China-US high-level economic and trade consultations just concluded in Shanghai. Big stick, threatening to increase taxes.
The move sparked strong opposition from China. China has taken counter-measures to defend the core interests of the country and the people. In the early morning of the 6th, Xinhua News Agency announced that due to the US announced that it intends to impose a 10% tariff on US$300 billion in Chinese exports to the United States, it is a serious violation of the consensus of the heads of state of the two countries in Osaka, and the State Council Customs Tariff Commission will be new after August 3. The purchase of US agricultural products for sale does not exclude import tariffs, and Chinese related companies have suspended purchasing US agricultural products.
According to Yahoo Finance’s report on the 6th, the US’s behavior of “reversing the enemy” has once again made American farmers “buy” the object, giving the US farmers who are in the “deep waters” a “heavy blow”. Tyler Stafslien, a North Dakota soybean farmer, bluntly said, “This is another nail on the coffin.”
“The US farmers have been very difficult, and China’s decision is a heavy blow.”
American Farmers Reaction
American farmers are very angry and disappointed with the current developments. Stavslin said: “Looking at things getting worse, not better, it is really worrying. If you continue, American taxpayers may have to provide a new round of funding to farmers, otherwise we You will see thousands of farmers across the country suffering huge losses.”
Zippy Duvall, president of the American Farm Bureau, also said that the pain has spread throughout the country. “China’s decision to suspend the purchase of US agricultural products is a heavy blow to farmers and ranchers who are already very difficult.”
Although the US Department of Agriculture continues to provide subsidies to domestic farmers to offset the losses of farmers in Sino-US trade frictions, in fact, the results have been minimal. “Tariff policies have repeatedly exposed farmers to economic losses.”
In May of this year, the Trump administration announced that it would provide an additional $16 billion in aid to farmers affected by the trade war. This is the government’s second round of subsidies to farmers, and the first round of subsidies last year approved the Ministry of Agriculture for $12 billion.
It is worth noting that American farmers are important supporters of Trump in the election.
However, the US farmers did not buy the “good intentions” of Trump’s subsidies. They believe that, like last time, this is a “band-aid” for emergency hemostasis.
“This proves that the government recognizes that their tariff policies have caused economic damage to American farmers and the countryside.”
In May of this year, the price of US soybeans fell to the lowest level in 10 years, and for the first time since 2008, it fell below 8 US dollars per bushel. But for farmers, in order to earn some profits, despite the record low prices, they still sold the grain in their hands.
“At some point, you have to sell because we need some cash flow. And when you sell at a loss, the situation is very bad,” said Michelle Ziesch, a farmer from North Dakota. If soybean prices go down because of tariffs, I can’t do anything about it.”
“You have to have the same cash flow as any business. You might sell it at a loss, just to remove the East Wall and make up the Western Wall,” Stavslin said.
Reuters said that US farmers can start applying for the next round of trade aid this month. However, the uncertainty of trade has made long-term planning for US farmers very difficult.
Kansas farmer Derek Sawyer said, “We are very grateful for the aid. They have provided help, but we are more willing to open up the market because it will make us more stable in terms of funding.” “The market is now volatile. Big, because no one knows the rules of the game, and no one knows how to look at the future.”
Qi Xi said to Yahoo Finance, “We now hope that trade negotiations can continue and that some progress is expected.”
However, the responsibility of the Chinese enterprises to suspend the procurement of agricultural products is in the United States, and the United States does not believe in it and harms others.
In response to the recent US claim that China did not purchase the actual actions of US agricultural products, the relevant person in charge of the National Development and Reform Commission said in an interview with CCTV on the 5th that Chinese companies have purchased US agricultural products such as soybeans from the United States. However, some agricultural products have not yet been purchased. The transaction was mainly due to the lack of competitiveness of the prices of these products.
Cong Liang, member of the Party Committee of the National Development and Reform Commission, and the Secretary-General of the National Development and Reform Commission, cited ethanol as an example. In March and July last year, they imposed tariffs on the 232 and 301 investigations against the United States respectively. The Chinese side conducted two imports of ethanol from the United States. The tariffs are imposed on the rounds, and the tariffs of 15% and 25% are added respectively. The current tax rate is 70%. According to the US exporter’s quotation, after excluding the 25% tariff imposed by the counter-301 investigation, the import duty-paid cost is still more than 30% higher than the domestic market price, and it is not commercially operable.