The Trump administration has applied a 10 per cent tariff to $200 billion of Chinese imports from September 24.
RaboResearch dairy analyst Emma Higgins said President Trump has also threated this tariff could be lifted to 25 per cent by the end of the year.
“He also warned that if the Chinese were to take retaliatory action against US farmers or industries it would ‘immediately pursue phase 3’. This would involve tariffs on an additional $276b of Chinese goods.”
In other world news, Ms Higgins said if Russia is to be self-sufficient in dairy and replace dairy imports lost with the trade sanctions in 2014, it would need to increase its milk production by 20–25 per cent.
The Russian Minister of Agriculture has previously said Russia needs 6–8 years to achieve full self-sufficiency in milk.
These comments come as a project begins with the Vietnamese dairy company TH Milk, now building a dairy plant in Kaluga.
Ms Higgins said milk production in Europe is gaining momentum despite the heatwave that spread across parts of the continent.
EU milk supply is in positive territory for July 2019, with growth of 1 per cent year on year. German production has risen 2.8 per cent; Irish production 3.1 per cent; while the Netherlands has dropped by 1.2 per cent.