China announced on August 23 that they would impose tariffs on $75 billion worth of products from the U.S., and alfalfa hay is included in those products. Our contact in China, and verified by export contacts in Washington state, said that effective December 15, there will be an additional 10-percent tariff on alfalfa hay exported from the U.S. to China.
According to news reports, a 5-percent and 10-percent tariff will occur on September 1 and December 15, 2019, respectively, on over 5,000 U.S. products that are exported to China. One West Coast export contact said it will change their company’s strategy on the timing of shipments of alfalfa hay to China in the coming months. Another exporter said that a few Chinese customers had already contacted them last Friday and wanted to move up shipping dates on alfalfa hay to ensure arrival of the hay before December 15.
Author of The Hoyt Report, providing hay market analysis and insight.