US sorghum imports slapped with 179% tariff by China
Kansas farmers are panicking over China’s hefty tariff on imports of one of the state’s biggest crops.
China announced Tuesday that it will impose a 179% tax on the ancient grain sorghum, which is used to make liquor and feed livestock.
“We’re concerned, but we are great competitors internationally,” Kansas Governor Jeff Colyer said during an exclusive interview with FOX Business’ Liz Claman. “We think we can compete and we’re working with Department of Agriculture, the [United States Trade Representative.] We want to solve this problem.”
Kanas is the top U.S. producer of the cereal grain and in the last three years, it has exported $416 million worth of sorghum to China. The U.S. sends 80% of the cash crop to China.
China and the U.S. have been inching toward a trade war by announcing tit-for-tat tariffs on goods. Colyer said allegations of dumping sorghum on the Chinese market may have been part of the hoopla surrounding the trade conflict.
“We’re not doing that. We compete very fairly and around the world on this,” he said.
Other countries such as India and Nigeria are on U.S. farmers’ heels, potentially becoming the next United States of sorghum. Mexico has turned to Brazil to buy their corn.
“We do have some competition that’s going on around the world,” Colyer said. “China is our biggest market, and we hope we can move this forward.”
Sorghum is also used as a major gluten-free substitute that is grown in the drier area of western Kansas.