China retains anti-dumping tariffs on US distillers grains

China will maintain its anti-dumping and anti-subsidy tariffs on imports of US distillers grains (DDGs), a by-product of ethanol production used for animal feed, Reuters reported on 19 June.

The Ministry of Commerce said US DDGs products might re-enter the Chinese market in large volumes and hit the domestic sector if anti-dumping duties of 42.2%-53.7% and anti-subsidy tariffs of 11.2%-12% were terminated.

Beijing launched a review of the tariffs in April amid trade talks between Beijing and Washington aimed at ending the prolonged China-USA trade war, Reuters said.

The two sides have imposed tit-for-tat tariffs on each other’s goods, including US soyabeans and oils and fats products, since July last year.

“I think China is stating its attitude, saying ‘If you want a war, we can keep fighting’,” Reuters quoted a trader with a Chinese state-owned firm as saying.

China first imposed 33.8% anti-dumping tariffs on US DDGS in 2016, resulting in a 55% fall in imports of the product from 2015.

The duties were raised to 42.2%-53.7% in January 2017, while the anti-subsidy tariffs were raised to 11.2%-12% from 10.0%-10.7%.

According to Reuters, China bought 3M tonnes of DDGS worth US$684M in 2016, mainly from the USA.

If a trade deal were to be agreed, China might import a large volume of US agriculture products including DDGs, Reuters wrote.