Singapore — China this weekend announced 25% in import tariffs on $50 billion worthof goods imported from the US, including soybeans, wheat, corn and sorghum,according to the Ministry of Commerce.
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The move comes in retaliation for 25% in import tariffs also on $50billion worth of Chinese goods delivered into the US.
The first wave of tariffs on $34 billion worth of US goods will takeeffect on July 6 and will include US origin soybeans. The second wave of 25%import tariffs, on the remaining $16 billion, will be announced at a laterstage.
The US is the second-largest supplier of soybeans into China, afterBrazil, with a 39.4% share, or 36.8 million mt exported in the 2016-17marketing year.
Furthermore, traders expect Brazil's share to grow to up to 70% of the103 million mt imports forecast for the 2018-19 marketing year, according tothe US Department of Agriculture.
Nevertheless, South America -- a key competitor to the US export market-- will not be able to provide China with all of its import requirements andsome US exports are still expected to be booked.
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