US farm producers brace for hit to exports to China in Trump admin

SHANGHAI, Nov 07 (Reuters): US agriculture producers are bracing for the prospect of a fresh trade war under US President-elect Donald Trump again hitting exports of farm goods to China, but they said while any new tariffs would hurt, they felt better prepared.

Several U.S growers of crops from almonds to soybeans are in China this week for the China International Import Expo (CIIE), an event aimed at encouraging import purchases, and to meet officials.

The sector is still reeling from up to 25 per cent tariffs Beijing slapped on US farm imports from soybeans to sorghum during the 2018 trade war in retaliation against duties imposed by the Trump administration.

China is the largest market for U.S farm goods and is its biggest customer for soybeans, the top US export to China, but it has been trimming purchases. US agricultural exports to China fell 24 per cent last year to $29.1 billion, according to the US Department of Agriculture (USDA).

That is expected to fall further this year but China will remain a key market, said Jason Hafemeister, USDA Acting Deputy Under Secretary for Trade and Foreign Agricultural Services.

"It's a concern," Hafemeister said. "Even in the last couple of years we've recognised the potential for disruption in US-China trade so a lot of our efforts have gone into diversifying our markets," he told Reuters.