U.S. poultry producers hit by Chinese tariff

tyson.pngClick chart for more on Tyson Foods. By Charles Riley, staff reporter


NEW YORK (CNNMoney.com) -- The Chinese Ministry of Commerce announced Sunday that poultry imports from the U.S. will face steep tariffs, the latest salvo in an ongoing trade war between the two countries.

Following the news, shares of major U.S. poultry producers were down in early trading Monday. Hit by a tariff of 50.3%, shares of Tyson Foods (TSN, Fortune 500) dropped 1.7% to $15.38. Another major producer, Sanderson Farms (SAFM), was off around 1% to $41.11.

The 35 companies singled out in the announcement will face tariffs of between 50.3% and 53.4%. All U.S. producers not named in the release will face a tariff of 105.4% percent.

Sunday's announcement comes on the heels of a year-long study of poultry imports conducted by the Chinese government that it says found U.S. suppliers were dumping products into the Chinese market to the detriment of domestic producers.

"The ruling is that there is a causal relationship between the U.S. dumping of broiler products and the losses suffered by domestic businesses," the ministry said in a statement.

The tariffs went into effect starting Monday, for a five-year term. In August, China imposed a preliminary tariff of up to 30.3% on imported chicken products from the United States.

So while Sunday's announcement might not have been a total surprise, its something that Assistant U.S. Trade Representative Carol Guthrie says is disappointing.

"We are disappointed that duties are to be imposed, and [we] will be examining the determination for consistency with applicable rules," she said in statement.

China's announcement follows action from the U.S. government in September that placed a 35% tariff on tires imported from China.

The back and forth between U.S. and Chinese policymakers has grown more contentious in recent months, helped in part by the fact that Republican and Democrats in Congress appear to have found a rare patch of common ground on the issue.

On Friday, the powerful House Ways and Means Committee voted in favor of a bill designed to address China's undervaluation of its currency.

China said this year it would allow its currency, the renminbi, to trade in a wider range against the dollar. But the Chinese currency, also known as the yuan, has scarcely appreciated since then, inflaming critics who charge the undervalued renminbi steals U.S. manufacturing jobs.

And as for the wisdom of instituting tariffs during tough economic times, a policy historians often argue made the Great Depression worse, Rep. Sander Levin, D-Michigan, says there is no reason for worry.

"To those who would raise the specter of 'protectionism,' this legislation is indeed the opposite ... this bill is one antidote to remedy the effects of China's protectionist measure," he said. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 18,081.81 57.64 0.32%
Nasdaq 4,786.71 21.29 0.45%
S&P 500 2,087.05 4.88 0.23%
Treasuries 2.29 0.03 1.51%
Data as of Dec 24
Company Price Change % Change
Bank of America Corp... 18.04 0.12 0.64%
Gilead Sciences Inc 92.34 2.89 3.23%
General Electric Co 25.71 -0.17 -0.66%
Cisco Systems Inc 28.57 0.32 1.13%
Apple Inc 112.22 -0.32 -0.28%
Data as of Dec 24

Sections

The city's sanitation commissioner is expected to decide whether recycling foam containers is "environmentally effective" and "economically feasible," by January 1, 2015. More

Cheap gas spreads with a half dozen states poised to join Missouri offering drivers gas for less than $2 a gallon. More

To save a rocket, SpaceX will attempt rocket archery: nailing a bullseye by landing a lower rocket booster on a relatively tiny ocean barge. More

According to data from Google Trends and GrubHub, Chinese food remains the most popular type of food order on Christmas. More

After losing their daughter to liver failure and getting hit with $200,000 in student loans, the Mason family is finally getting financial relief. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.