New China Tariffs Impact Potato Trade – Industry Reacts

Last week, the Trump Administration announced that they were preparing an additional USD200bn in tariffs against China in an escalating trade war.

The potato industry has already been impacted by retaliatory tariffs in response to previous actions against steel and aluminum and against China directly due to unfair trade practices, according to the Northern Plains Potato Growers Association (NPPGA).

This retaliation against the potato industry primarily involves frozen fries to Mexico. China's action against seed and fresh potatoes was muted due to lack of market access.

As the list of retaliatory tariffs increases and more U.S. agricultural export markets are restricted, it has caused both industry and Congress to seek some type of short-term response. The US National Potato Council (NPC) and a group of other specialty crop interests met with USDA officials last week to advise them of the export losses and explore the government tools that might be available to mitigate the impact.

"The primary message is that we want all sides to get back to the negotiating table and remove these tariffs. During the Mexican trucking dispute, the potato industry experienced first hand the type of long-term impact these tariff disruptions can cause," said John Keeling.

In addition, the Senate passed a non-binding resolution 88-11 that instructs members negotiating an appropriations bill to include enabling the language to constrain the President's ability to escalate the trade war further. It is unlikely that this language will be enacted, as it would require the president's signature or a veto override. However, the effort is a clear indication of the concern that members of Congress are feeling as the tariffs increase and the November elections draw closer.