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New round of tariffs on US chicken exports to China

China will impose a second round of tariffs of as much as 31.4% on imports of US chicken products, a move that is likely to antagonize trade tensions between the two countries, the Financial Times reported. The Ministry of Commerce said the new tariffs – which come in addition to duties of up to 105.4% imposed on US poultry in February over alleged dumping – were a response to unfair subsidies awarded to US poultry farmers. This latest move all but marginalizes US poultry firms from China, which became their biggest export market in 2008 with sales of US$722 million. It is the first time Beijing has imposed duties on agricultural goods on the grounds of alleged subsidies. The ministry said they were the result of subsidized corn and soybeans used in chicken feed. US firms that cooperated with the Chinese investigation, including Pilgrim’s Pride (PPC.NYSE) and Tyson Foods (TSN.NYSE), face lower duties than other companies.

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