Instant View: China to impose extra tariffs of 10%-15% on various US 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 twenty-five U.S. firms nether export and concern restrictions.

COMMENTS:

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.

"However, South America, particularly Brazil, is approaching its soybean export bounds aft years of maturation (2024 exports are expected astatine 96 cardinal tons). Currently successful the harvest season, Brazilian soybeans person not yet arrived successful ample quantities astatine Chinese ports but are expected successful Q2. With the further U.S. tariffs, the already choky soybean banal volition go adjacent much strained."

GENEVIEVE DONNELLON-MAY, RESEARCHER AT OXFORD GLOBAL SOCIETY, MELBOURNE

"While the caller tariff announcement is not arsenic dense arsenic the 25% successful 2018, it does people galore of the aforesaid cultivation products. In addition, the 10% tariff whitethorn supply Beijing with the accidental to summation the tariffs connected U.S. cultivation goods by different 10% oregon adjacent 20% successful the coming months and years.

"Soybeans were considered a anemic nexus during the archetypal Trump medication but Chinese policymakers person learned lessons from that clip and are, successful theory, overmuch amended prepared, owed successful portion to Beijing's nutrient import diversification strategy."

WANG ZHUO, PARTNER AT HEDGE FUND ZHUOZHU INVEST, SHANGHAI

Raising tariff connected China "will apt wounded the U.S. itself arsenic it needs inexpensive Chinese products to bring down inflation. Higher tariffs connected U.S. agriculture products volition besides negatively interaction China", but countermeasures are politically necessary. "So, it would beryllium omniscient to marque immoderate symbolic determination without triggering an escalation successful tensions."

DENNIS VOZNESENSKI, ANALYST, COMMONWEALTH BANK, SYDNEY

"Chinese tariffs connected U.S. wheat and maize imports should beryllium supportive for request for Australian wheat and barley exports. However, China's caller slowdown successful imports of provender grains from each origins should temper the excitement."

WAN CHENGZHI, ANALYST, CAPITAL JINGDU FUTURES, DALIAN CITY

"Considering that China's highest import play for U.S. soybeans has already passed, the interaction of these countermeasures connected the full measurement of U.S. soybean imports is limited. Any terms increases successful the aboriginal are apt to beryllium much of an affectional marketplace response."