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Trade war impacts Oregon agriculture

Wednesday, September 18, 2019   (0 Comments)
Posted by: Beth Farmer
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ODA director Alexis Taylor and ag industry leaders told the Oregon House Land Use and Agriculture Committee on Monday that the trade war with China is costing Oregon growers sales, according to reports by the Capital Press agricultural newspaper (login required) and KGW-8 (free) TV. 

The trade barriers imposed by China include tariffs of 50 percent on some products — such as hazelnuts, fresh apples and cherries — but they aren’t the only barrier. Exporters also face delayed inspections and drawn-out paperwork.

The tariff for wheat is expected to go to 100 percent in December, but according to Blake Rowe of the Oregon Wheat Commission, the Chinese have already stopped buying it from the U.S., costing growers $340 million in sales nationwide.

Potatoes and beef are also affected by the tariffs. Tariffs are paid by the importing party and either passed on to the consumer, or absorbed by the purchaser out of their margin. More often, the purchaser opts to get the commodity from another country.

Oregon hazelnut growers said demand for their product remains strong despite what is effectively an 81.5 percent duty on their crop. Oregon represents about 90 percent of U.S. hazelnut production.