China: certain hydrocolloids may be subject to tariffs

24/08/2018 12:00 - 375 Views

SAN DIEGO — Tariffs between the United States and China could affect the price of certain hydrocolloids, especially xanthan, according to an Aug. 23 e-mail newsletter from San Diego-based IMR International, an industrial market research and consulting company in food hydrocolloids.

Xanthan from China could face a 25% import tariff. Other suppliers of Chinese xanthan, but not all, are facing a 9% anti-dumping duty. A customs duty of 5.8% could bring the total percentage to 39.8% for certain suppliers.

“The total may even be higher if some tariffs are compounded over others,” the e-mail newsletter said. “High level trade negotiations are currently underway between U.S. and Chinese officials. An announcement is expected in the coming week(s). Whatever the outcome, the level of uncertainty for Chinese hydrocolloid imports to the U.S. will remain high.”

Xanthan is used to thicken and stabilize emulsions, foams and suspensions in food and beverage applications. Xanthan is an ingredient in many gluten-free applications.

Source: Food Business News