China Striking at U.S. Sorghum as Trade War Escalates
As trade tensions continue to escalate between China and the U.S, China has now targeted sorghum. Effective April 18, all Chinese importers of the U.S. grain must pay a deposit equal to 178.6 percent of the value of the cargo.
Eighty percent of all U.S. sorghum exports, predominantly grown in Texas and Kansas, are bound for China, according to the U.S. Grains Council.
In a statement announcing the move, the Chinese government stated that due to the importation of U.S. sorghum, mainly used in livestock feed and in the production of liquor, domestic businesses were “substantially damaged”.
In 2015 the value of U.S. sorghum exports to China was approximately $2 billion, followed by two years where the value dropped closer to $1 billion. However, in the first two months of this year, the value jumped by 30 percent compared to the same period a year before, according to the USDA.
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