China Steps Up Tariffs On U.S. Poultry Imports

In China-U.S. trade relations’ own game of chicken, China is to impose new tariffs on U.S. chicken imports in retaliation for what it says are unfair U.S. subsidies to American poultry farmers by way of cheap feed. A new tariff of up to 31.4% comes on top of up to 105.4% tariffs imposed earlier this year in response to alleged dumping.

The move comes just when bilateral relations seemed to be coming out of a choppy period with the yuan’s peg to the dollar the main point of contention. However, China started an anti-dumping and anti-subsidy investigations into U.S. poultry imports last September.

Last year, U.S. poultry producers sold $722 million worth of chicken and chicken part, mostly wings and feet, to Chinese consumers, and accounted for 90% of China’s chicken imports in the first half of the year,  Xinhua says. That trade will be effectively ended by the new tariffs. This is also the first time China has imposed tariffs on agri-imports on the grounds of subsidies, though it has done so with industrial products, notably U.S. steel.

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