A proposal from the U.S. Trade Representative to impose new fees on ocean carriers with ties to China could take a major toll on U.S. farmers and ranchers.
Two-thirds of all agriculture exports by volume are shipped overseas, and the cost of transporting exports to international trading partners could increase dramatically.
In an effort to address China’s dominance in global shipbuilding and logistics, the Trump administration has proposed a series of fees as high as $1.5 million targeting Chinese-operated vessels and Chinese-built vessels that access American ports.
“Depending on the fees set, bulk agriculture exporters could face an additional $372 million to $930 million in annual transportation costs,” says an American Farm Bureau Market Intel Report.
Bulk agricultural exports, particularly grain and oilseeds, are especially vulnerable.
“Farmers have lost money on almost all major crops recently,” says AFBF President Zippy Duvall. “They cannot afford the extra costs these fees would impose.”
