China had an 8 percent tariff on U.S. hay but in response to President Trump increasing the steel and aluminum tariffs, they added another 25 percent on top.
This is a big deal to those in the hay industry.
A report from the University of California Agricultural Issues Center in Davis showed that the trade war with China is expected to push the price of alfalfa down 7.5 percent and cut revenue for alfalfa producers by about 377 million in 2018. The value of U.S. hay exports reached a new high last year at about $1.5 billion, which almost quadrupled the previous two decades.
According to AllHay.com, “If China wants the highest quality hay from America; they are going to have to relent on their tariffs. Otherwise, American suppliers will increase their exports to other countries.”
As a forum for buying and selling hay across the world, AllHay.com is following the ever-evolving hay market this autumn very closely and wants to help others understand the impact tariffs put in place by the President are impacting the hay and farm industries in America.