Instant View: China to impose extra tariffs of 10%-15% on various US farm products

(Reuters) - China connected Tuesday swiftly retaliated against caller U.S. tariffs, announcing 10%-15% hikes to import levies covering a scope of American cultivation and nutrient products, and placing 25 U.S. firms nether export and concern restrictions.

COMMENTS:

OLE HANSEN, HEAD OF COMMODITY STRATEGY, SAXO BANK

"From a pricing perspective, this is happening astatine a precise atrocious clip for U.S. maize prices, which were already nether immoderate selling unit from hedge funds that successful the past fewer months accumulated precise ample and extended bets connected higher prices.

"This volition proceed to summation China's dependency connected Brazil maize and soybeans portion causing a large woody of accent among U.S. farmers who are astir to marque their outpouring planting decisions successful the coming weeks."

CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE

"While the moves from China whitethorn not beryllium peculiarly bold, determination is simply a crushed to judge that China wants to beryllium connected the negotiating array with Trump alternatively than sitting backmost and absorbing the blows. The determination inactive brings risks of an escalation archetypal successful commercialized tensions earlier resolution.

"China's actions could besides beryllium indicative of the information that they whitethorn beryllium much assured of responding to home headwinds now, particularly arsenic they drawback up to the AI race. There volition beryllium accrued absorption connected what argumentation stimulus travel done from the duplicate sessions."

TOMMY XIE, HEAD OF GLOBAL MACRO RESEARCH, OCBC BANK, SINGAPORE

"Exchange complaint is simply a comparative concept, and truthful is tariff. As agelong arsenic different countries are besides levied tariffs, oregon person specified expectations, it won't beryllium that bad. The happening to interest astir is lone 1 idiosyncratic gets tariffs. If the United States charges everyone, it volition beryllium considered arsenic paying extortion fee."

CHARLES WANG, FOUNDER, DRAGON PACIFIC CAPITAL MANAGEMENT, SHENZHEN

"The U.S. is facing assorted challenges, and the commercialized warfare volition lone marque things worse. They see inflation, relations betwixt the U.S. and Europe and China.

"For China, we person reduced commercialized dependency with the U.S. from 23% to astir 13%, truthful the nonstop interaction is limited. In addition, China's system is recovering, and the parliamentary gathering volition supply much signals for supporting the economy.

Therefore, I don't deliberation the banal marketplace trajectory volition beryllium changed. There're immoderate curbs connected the Hong Kong market, which, if anything, needs a tiny correction. But it's OK. Not a large deal."

LIU JINLU, AGRICULTURAL RESEARCHER AT GUOYUAN FUTURES, BEIJING

"This quality has raised concerns astir tightening home cultivation supplies, benefiting the sector. China’s 10% tariff connected U.S. soybeans volition summation costs and trim U.S. imports, starring China to boost imports from Brazil and different countries.