Citing Tariff, Albaugh Raises Prices
Albaugh, the U.S. agrichemical manufacturer and formulator, issued the following statement, following the U.S. government’s move to impose tariffs on certain Chinese products imported into the country:
On Sept. 17, 2018, the United States Trade Representative announced an extra 10% tariff on imports of a long list of products from China. The list includes several raw materials and active ingredients used by Albaugh and other crop protection companies to produce herbicides, insecticides, fungicides and growth regulators for American farmers.
Though Albaugh has a very diverse supply chain based on production in the USA, Argentina, Mexico, Brazil, Europe and India, on some products only China offers commercially or viable supply. In such cases, we are left with no alternative but to increase prices reflective of the higher tariffs. Additionally, it has been announced that the new tariffs will be increased to 25% beginning January 1, 2019, in which case prices will again be adjusted.
Albaugh supports free and fair trade globally and recognizes the need to improve the trade relationship between the USA and China. However, the effect of these additional tariffs will be price increases on much needed crop inputs and thus place an unfair burden on farmers.
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