China Says It Will Put a Tariff On U.S. Chicken
September 27, 2010
China (ChattahBox International Business News) – China has announced a five year tariff on chicken imports into the country, after an investigation that they say shows that unfairly low prices are undermining local markets.
The tariff is a steep one, with Yahoo! Finance reporting the amount to be between 50.3% and 105.4% on all chicken coming into China from the U.S.
Over the past year, China has been a major importer of U.S. chicken products, and has been the largest importer since 2009. But they now say that those products are being sold at low rates that are hurting the market, a process that is known as “dumping.”
This is another fight in a long list of battles between the two governments. Earlier this year, China was accused of undervaluing their currency as they slapped on a low parity rate against the U.S. dollar. There are also arguments over the price of steel, movies, books, music and several other trade items.
The tariff, especially one so harsh, is sure to once again cause tempers to flare, as both sides attempt to spark a slow market.