US sorghum ships change course mid-trip over China tariffs: report

U.S. ships hauling sorghum have changed course after China hit exports of the grain with a 179% tariff earlier this week, according to a news report.

At least 20 U.S. ships carrying more than 1.2 million tons of sorghum, which is a livestock feed substitute for corn, are currently at sea, Reuters reported Friday, and at least five of those cargo vessels have changed routes in the wake of the tariffs announced Tuesday. The total value of the sorghum aboard the ships is $216 million, Reuters said, and any deliveries would be subject to the hefty fees levied by Beijing, making them less profitable.

Cargill confirmed to Reuters that it was one of the exporters, though it did not provide further details. A tit-for-tat tariff conflict between Beijing and Washington has escalated in recent weeks, resulting in China’s decision to impose 179% tariffs on U.S. sorghum. China is the largest export market for U.S. producers of the crop.

The U.S. announced tariffs earlier this month on $50 billion worth of products from China over its intellectual property practices. Beijing quickly responded with retaliatory tariffs of equal value.