US farm sector stockpiles Chinese chemicals before scheduled tariffs

Winners and losers

Since the Trump administration applied 10 percent tariffs in September, The Chemical Company, based in Rhode Island, has raised its DCD chemical price about 8 percent, said general sales manager AJ Petrarca.

With 25 percent tariffs coming, the company ordered more from Chinese manufacturers including Ningxia Jiafeng Chemicals Co and Beilite, swelling inventories by about 10 percent over normal levels, he said.

Those stockpiles may only last until February or March, however.

"I don't think we'll have enough to keep everybody whole throughout the season," Petrarca said.

U.S. customers, not Beilite, will absorb the tariff cost, said the Chinese company's export manager, who gave his surname as Wang.

"It is not good to do business in the U.S. market now," he said.

U.S. chemical-maker Willowood has little choice but to pass higher costs of buying Chinese chemicals on to retailers who sell to farmers.

"There's not enough margin to eat that difference," said Joe Middione, Willowood's strategic business manager. "We're seeing fairly significant increases across the portfolio."

December is typically a brisk sales period, when farmers stock up before a new tax year.

"It's caused a lot of confusion," Middione said. Farmers, he said, are "shell-shocked."