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China continues U.S. DDGS tariffs for 5 years

Continued tariffs are not expected to have a significant impact on U.S. exporters.

2 Lisa Selfie December 2020 Headshot
Lucas George Wendt | PEXELS
Lucas George Wendt | PEXELS

China's Commerce Ministry said on January 11 it will continue to impose anti-dumping and anti-subsidy tariffs for another five years on the animal feed ingredient distiller’s dried grains with solubles (DDGS) imported from the U.S.

DDGS are the nutrient rich co-product of dry-milled ethanol production.

According to reports, the move, widely expected by the industry, keeps tariffs amounting to as much as 66% on the product. After the tariffs expired in 2021, they were followed by a one-year review period ending on January 11.

No 'significant impact' on U.S. exports of DDGS

Continued tariffs are not expected to have a significant impact on U.S. exporters who have shifted sales to other markets such as South Korea and Mexico since China implemented the duties in 2016.

The U.S. Grains Council notes Mexico purchased the bulk of U.S. DDGS exports, consisting of more than 18% of the export market, while Vietnam was the second largest importer. South Korea, Türkiye and Indonesia round out the top five importers for 2020/2021. China is ranked as the #10 importer of U.S. DDGS.

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