The Chinese government has decided to apply anti-dumping duties of up to 54% on U.S. exports of distillers’ grains, a byproduct of ethanol production used as animal feed. This is well above the initial 34% rate applied in September. U.S. exports to China already fell 69% in the three months to November 30 on a year earlier, dragging total U.S. exports down 2%. While this could be seen as a preemptive move in a broader trade war with the incoming U.S. administration, in reality it comes shortly after Chinese government calls to reduce domestic grain inventories.