Why China is threatening tariffs on Alaska seafood
19/06/2018 12:00
ANCHORAGE (KTUU) — Gov. Bill Walker is modifying his trip to Washington, D.C. next week to include discussions on the looming trade war between the United States and China — where just weeks ago, Walker led an Alaska delegation on a mission to expand trade ties.
Walker had already planned to attend a natural gas summit in the nation’s capital according to an aide. But now, with China threatening to retaliate in kind to President Trump’s tariffs on $50 billion in Chinese goods, Walker's trip has taken on a new purpose.
On Friday, the Chinese government said it would impose 25 percent tariffs on seafood imports from the U.S., much of which comes from Alaska.
It's a threat that's putting new stress on Alaska fishing interests.
Alexa Tonkovich, executive director of the Alaska Seafood Marketing Institute, says officials don’t know if the tariff will include all Chinese imports — including products that are processed and exported to other countries, or just fish and shellfish that are consumed in China.
China is Alaska’s largest trading partner. Nearly all of that value is in fish and mollusks, and about half the trade is consumed in China, Tonkovich said.
Walker has said that Alaska could help reduce the U.S.-China trade imbalance through its exports, but now, it seems a trade war that could interfere with Alaska exports may be inevitable. On Monday, several news sources reported that Trump is preparing to escalate the fight with China, ordering U.S. trade officials to look for another $200 billion in Chinese products that could be subject to U.S. tariffs, up from $50 billion in the last round.
China initially targeted Midwest soybean farmers with tariffs, provoking speculation among commentators that the move was to punish states that supported Trump in 2016. Just over 50 percent of Alaska voters also supported Trump, but Tonkovich said she had no idea whether electoral politics played a role in China’s targeting.
Alaska officials are hoping that China’s threat to Alaska is just a negotiating tactic, and that it will back down before the tariffs are set to take effect next month.
In his statement announcing the new purpose for his Washington trip, Walker touted Alaska as a lever to reduce the U.S.-China trade imbalance.
“Alaska has abundant resources, from natural gas and seafood to beer and baby food," Walker said. "These resources enable our state to dramatically reduce the trade deficit between the United States and China, if we can finalize agreements to increase exports of our products.”
Walker said he hoped a trade war wasn’t inevitable.
“Next week, I will meet in Washington with leaders from both governments who have been at the table leading the efforts to avoid an unnecessary trade war. I will continue to work directly with both sides to make sure Alaska’s interests are protected.”
Walker had already planned to attend a natural gas summit in the nation’s capital according to an aide. But now, with China threatening to retaliate in kind to President Trump’s tariffs on $50 billion in Chinese goods, Walker's trip has taken on a new purpose.
On Friday, the Chinese government said it would impose 25 percent tariffs on seafood imports from the U.S., much of which comes from Alaska.
It's a threat that's putting new stress on Alaska fishing interests.
Alexa Tonkovich, executive director of the Alaska Seafood Marketing Institute, says officials don’t know if the tariff will include all Chinese imports — including products that are processed and exported to other countries, or just fish and shellfish that are consumed in China.
China is Alaska’s largest trading partner. Nearly all of that value is in fish and mollusks, and about half the trade is consumed in China, Tonkovich said.
Walker has said that Alaska could help reduce the U.S.-China trade imbalance through its exports, but now, it seems a trade war that could interfere with Alaska exports may be inevitable. On Monday, several news sources reported that Trump is preparing to escalate the fight with China, ordering U.S. trade officials to look for another $200 billion in Chinese products that could be subject to U.S. tariffs, up from $50 billion in the last round.
China initially targeted Midwest soybean farmers with tariffs, provoking speculation among commentators that the move was to punish states that supported Trump in 2016. Just over 50 percent of Alaska voters also supported Trump, but Tonkovich said she had no idea whether electoral politics played a role in China’s targeting.
Alaska officials are hoping that China’s threat to Alaska is just a negotiating tactic, and that it will back down before the tariffs are set to take effect next month.
In his statement announcing the new purpose for his Washington trip, Walker touted Alaska as a lever to reduce the U.S.-China trade imbalance.
“Alaska has abundant resources, from natural gas and seafood to beer and baby food," Walker said. "These resources enable our state to dramatically reduce the trade deficit between the United States and China, if we can finalize agreements to increase exports of our products.”
Walker said he hoped a trade war wasn’t inevitable.
“Next week, I will meet in Washington with leaders from both governments who have been at the table leading the efforts to avoid an unnecessary trade war. I will continue to work directly with both sides to make sure Alaska’s interests are protected.”
Source: ktuu.com
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