Which Dairy Products are Impacted by Chinese Tariffs?

Trade relations between the US and China are tense as both nations impose tariffs on imports. ( MGN/Pixabay )

The trade war between the U.S. and China hit new highs recently when China announced additional tariffs on more than $60 billion of U.S. goods. U.S. dairy products were not immune to the tariffs imposed last summer, and it appears that they were not left out of the wide swath cut by this new round tariffs either. However, it appears that little has changed from previous tariff announcements. 

"Just lactose, infant formula, and casein are being hit with higher retaliatory tariffs," says Nate Donnay, director of dairy market insight with INTL FCStone. "Retaliatory tariffs on the other major products are unchanged."

Below is a list of products and expected tariffs, generated from information provided in a USDA GAIN Report:

Tariff Rate and Implementation Date
Product Description Jan 1, 2019 June 1, 2019 Total Applied Tariff, June 1, 2019        
Milk & Cream, Fat less than or equal to 1%, Not Concentrated or Sweetened 15% N/A 40%
Milk & Cream, 1% 15% N/A 40%
Milk & Cream, 6% 15% N/A 40%
Milk & Cream, Fat >10%, Not Concentrated or Sweetened 15% 25% 40%
Milk & Cream in Solid Forms, Fat less than or equal to 1.5% 10% 25%

35%

Milk & Cream In Solid Forms of >1.5% Fat, Concentrated 10% 25% 35%
Milk & Cream Not In Solid Form, Concentrated, Unsweetened 10% 25%

35%

Milk & Cream Not In Solid Form, Concentrated, Sweetened 10% 25%

35%

Yogurt 10% 25%

35%

Buttermilk, Curdled/Fermented/Acidified Milk & Cream 20% 25%

45%

Whey and Modified Whey 6% 25%

31%

Products Consisting of Natural Milk Constituents 20% 25% 45%
Butter 10% 25% 35%
Dairy Spreads 10% 25% 35%
Other Fats & Oils Derived From Milk 10% 25% 35%
Fresh Cheese, Including Whey Cheese, Curd 12% 25% 37%
Grated or Powdered Cheese 8% 25% 33%
Processed Cheese, Not Grated or Powdered 8% 25% 33%
Blue-Veined Cheese, Other-Veined Cheese Product 8% 25% 33%
Cheese, Nes 8% 25% 33%

 

While China has imported a significant amount of dairy products during the first quarter of 2019, the U.S. has been largely left out of the market. This is due to Chinese tariffs imposed on U.S. goods last summer. Since the tariffs went into effect in July 2018, the U.S. Dairy Export Council says dairy volume to China has fallen 43%. 

U.S. Dairy Exports to China Plummet 43% After New Tariffs
Product July 2017 March 2018 (Pre-Tariffs) July 2018-March 2019 (With Tariffs) %Change
Whey 204,374 99,767 -51%
Lactose 66,622 60,698 -9%
SMP 21,546 7,183 -67%
Cheese 13,752 7,042 -45%
Other 27,973 15,389 -45%
Total 334,267 190,079 -43%

 

 

 

 

 
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