Importers will pay a deposit of as much as 38.4% to Chinese customs on purchases from June 9, the Ministry of Commerce said in a preliminary ruling, citing initial findings from an investigation that started in August. Supplies from BRF SA are subject to a 25.3% rate and an 18.8% duty will be imposed on goods from JBS SA subsidiaries, according to a list published by the ministry. BRF and JBS are Brazil’s top chicken producers.

High tariffs will reduce exports from Brazil and could lead to more American imports once China and the U.S. improve trade relations, said Kong Pingtao, general manager with Beijing Pro-Agri Communication Co. In February, China ended extra duties on U.S. chicken imports, but purchases remain banned due to bird flu concerns.

China’s imports of frozen chicken and products from Brazil fell 22% in 2017 to 382,052 metric tons worth $876 million, according to Chinese customs data. The Asian country is the world’s biggest consumer after the U.S. Imports may reach 500,000 tons in 2020, up 12% from 2017, on cheap chicken wings and paws, which are considered delicacies, according to China’s Ministry of Agriculture and Rural Affairs.

Shares of chicken industry-related companies declined. Guangdong Wens Foodstuffs Group Co., China’s largest producer, fell 3.9%. DaChan Food Asia Ltd. dropped 1.9%. Fujian Sunner Development Co. declined 0.7%.