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China tilapia is subject to a 25% tariff. What is the impact on its trading enterprises?
It is reported that the Office of the United States Trade Representative issued a new round of announcement on the elimination of tariffs on imported goods from China on August 6th, and 266 goods of China origin in the tariff list will enjoy tariff exemption, valid from August 7th, 2020 to February 3rd, 20201day. This round of seafood related to tariff exemption includes: Alaskan flounder, haddock, king crab meat, snow crab meat, rare crab meat and other crab meat. Small-sized tilapia fillets previously exempted from tariff by USTR are not on the list, which means that China tilapia will continue to be subject to 25% tariff in the next few months.

Due to the steady growth of tilapia production in China, but the American market is gradually weak, in the United States, livestock and poultry meat protein is likely to become a substitute for tilapia. The prices of Basha fish, pollock and Duobao fish are all relatively high. The purchasing manager of a foreign company said that since the United States imposed a tariff of 10% on imported frozen tilapia fillets from China last year, the demand has declined slowly and there has been no collapse. The price of tilapia in China and the United States has increased, and a large part of the increased cost has been absorbed by exchange rate fluctuations.

For China tilapia industry, it is not only the tax rate that scares exporters, but the uncertainty of the future market is the most tormenting problem. However, on the other hand, tariffs have increased and prices have gone up. However, Chinese-made tilapia has always been popular in overseas markets because of its delicious meat and high quality. It is reported that many domestic tilapia processing and production enterprises are busy working overtime in order to catch orders from American customers. For example, the tilapia export processing enterprise in Maoming said that the orders from the United States were not interrupted, and the customers also took the initiative to bear the costs brought by the tariff increase, clearly indicating that they were unwilling to give up trade relations with suppliers in China. The increase in tariffs will not affect American customers' willingness to buy. In fact, since the Sino-US trade dispute appeared last year, many domestic aquatic products enterprises have begun to adjust their production strategies. In Zhuhai, Guangdong Province, Bai Jiao sea bass is a national geographical indication product in Zhuhai, with an annual output of/kloc-0.228 million tons, accounting for more than 50% of the whole country. Before this round of tariff increase, opening up the domestic market has become the top priority of development.