Market News & Headlines >> China Maintains Duties on U.S. DDGS
China’s Ministry of Commerce announced on Wednesday that it was maintaining anti-dumping and anti-subsidy tariffs on imports of U.S. DDGS after closing a review of the measures that was opened in April.
In a statement, the ministry cited potential damage to domestic producers in its decision to retain anti-dumping duties of 42.2%-53.7% and anti-subsidy tariffs of 11.2%-12% on U.S. DDGS products. "U.S. DDGs products might re-enter Chinese market in large volume, and hit the domestic sector, if anti-dumping and anti-subsidy tariffs on the product were terminated," the ministry said in the statement on its website.
The tariff decision came with the U.S. and China preparing to resume trade talks ahead of a planned meeting between President Trump and China’s President Xi Jinping at the June 28-29 G-20 summit meeting in Japan.
"The result is expected but the timing to announce it is a little surprising," a manager at a major domestic ethanol and DDGs producer in China told Reuters News Service. He declined to be identified as he was not authorized to talk to media.
China's anti-dumping and anti-subsidy tariffs on U.S. DDGS were first implemented in 2016 at rates of 33.8% and 10.0%-10.7% respectively, causing a sharp drop-off in imports of the feed ingredient. The duties were raised to their current levels in January 2017.