Asia shuns US farm products

Asian buyers are reducing purchases of US agricultural goods as Washington's planned fees on China-linked vessels and sweeping import duties on key regional trading partners stoke uncertainty and dampen appetite for American products.

- NAVEEN THUKRAL

China, which retaliated with 34% duties on US goods, is the largest importer of US agricultural products, but other Asian countries including Japan, South Korea and Thailand also buy significant volumes of US wheat, corn, and soybean meal.

President Donald Trump's plan to revive US shipbuilding using part fees of up to $1.5 million on China-linked ships has forced exporters to hunt for non-Chinese ships and, in turn, driven up freight costs, denting demand for US farm goods.

"It makes the US now an unattractive destination for over half of the world's fleet," said Kansas-based freight consultant Jay O'Neil.

Ship owners and operators are reluctant to provide quotes for US ports for April, May and June due to the looming fees, he said.