Proposed actions to impose new tariffs on China will hurt U.S. farmers and consumers: That was the key message CropLife America (CLA) chief executive officer Chris Novak delivered recently in front of the U.S. Trade Representative Section 301 Panel. Currently proposed at 25%, the new List 4 tariffs would increase costs several-hundred million dollars per year and would affect CLA members, farmers and consumers.

“While we appreciate the Administration’s willingness to undertake tough measures to discourage trade practices that disadvantage our industry, we believe these proposed tariffs will have immediate negative effects on farmers, consumers and our members. After the Administration imposed tariffs last September on certain agrochemicals, the producer price index for these products skyrocketed,” Novak stated.

Many of the chemicals covered by the proposed tariffs are not produced in the U.S., and it is not easy to re-source these products. All new sources for pesticide active ingredients used in the U.S. market are subject to a time-consuming Environmental Protection Agency clearance process. Due to the limited existing capacity outside of China and the difficulties of bringing new sources on line, it is inevitable that the additional tariffs will increase the prices of critical tools for U.S. farmers.

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Novak, who testified on behalf of CLA and RISE (Responsible Industry for a Sound Environment), added, “Beyond our farm customers, these tariffs will also impact nurseries, lawn and garden companies and consumers who rely upon our products to protect their homes and businesses. The burden of these tariffs will fall disproportionately on the shoulders of American farmers, businesses and consumers without truly advancing the cause of free and fair trade.”

CLA is working with its partners in the agricultural community to reach out to members of Congress and USTR officials to help communicate the impact the proposed tariffs will have on farmers across the U.S.

The National Association of State Departments of Agriculture (NASDA) also submitted comments to USTR reaffirming NASDA’s position that no increased tariffs should be applied to Chinese goods in the ongoing trade dispute between the U.S. and China.

“We agree with the Administration’s findings of China’s restrictive economic and trade policies. However, NASDA believes alternative steps, such as engaging a coalition of like-minded countries, is a better solution to advancing free and fair trade with China,” NASDA chief executive officer Barb Glenn said. “Trade actions that trigger retaliation threaten rural jobs and fall disproportionately on agriculture, with immediate adverse effects that greatly outweigh benefits. There should be no increased or additional tariffs levied, for the sake of our rural economy.”

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The NASDA letter noted: "In regards to U.S. farm production, U.S. agricultural exports to China represented 5% of U.S. cash receipts in 2017. Specifically, the export:cash receipt ratio is 29% for soybeans and 51% for sorghum, making China a vital market for these two commodities and the hardworking American farmers who produce them. China also represents one of our best (if not the best) opportunities for major export growth in the near and long-term future."