President Trump signalled a potential de-escalation on the trade war with China, stating the US may reduce its high tariffs on Chinese goods substantially. The comment was made when asked about Treasury Secretary Scott Bessent’s statement that the tariff rates between the US and China have effectively embargoed trade between the countries. While President Trump said that the US is in active talks with China, a Chinese foreign ministry spokesperson has reported that the two economies have not engaged in any negotiations or have come to an agreement.
The tariffs placed on China by the US are higher than any other country at 145%. Beijing has responded by raising its total tariff on US goods to 125%. Market participants have said these actions could lead to a recession if the situation continues to escalate. The Expana Benchmark Price for pea protein concentrate in North America was most recently assessed $1.43/lb, nearly 7% higher than this time last year.
Additionally, the duties are causing growing concern amongst industry players on shipments of peas from Canada to China for further processing, as China placed a 100% tariff on Canadian peas in March. Market participants state that there is a slight increase in North American pea protein prices, while soy protein prices are relatively steady.
The plant-based protein market sentiment is becoming more bullish because of the anti-dumping duties put in place on pea protein concentrate shipments from China at the end of summer, and the ongoing trade war between the US, China, and Canada. Most participants state that they are taking a wait-and-see approach, as the outcome of the tariff situation remains uncertain.
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Image source: Adobe
Written by Andraia Torsiello
