U.S. Farmers Brace for Losses in New Trade War With China
The U.S.agricultural industry is bracing for the potential of tens of billions of dollars in losses after China on Friday announced a 34 percent retaliatory tariff on imports from the United States.China’s counterpunch to worldwide levies announced by the Trump administration this week will hit American farmers hard.
China, which consumes 14 percent of all U.S.agricultural exports, took in more than $27 billion worth of those and related products last year, according to the U.S.
Department of Agriculture.It is the third-largest importer of American farm goods, behind Mexico and Canada.During the first Trump administration, a two-year trade war between the United States and China reduced U.S.
agricultural exports to China by an estimated $25.7 billion.This time it could be even worse.“If these tariffs go into effect for a significant period, we’re likely looking at a disruption that is likely to be severe, and likely worse than the 2018 trade war,” said David Ortega, a professor of food economics and policy at Michigan State University.Those disruptions, he added, are not limited to short-term monetary losses.
“We saw acreage reductions, market share losses, and long-term structural shifts in global trade flows,” Dr.Ortega said.The 34 percent tariff announced on Friday is in addition to existing tariffs, like the 10 to 15 percent rates that China imposed last month.
The American Soybean Association noted in a statement that soybeans would face a 60 percent tariff in China starting next week, double what was levied in the 2018 trade war.The association estimates that American soybean farmers will lose $5.9 billion annually.
Brazilian soybean farmers, who gained greater access to China during the 2018 trade war, will be the beneficiaries, the statement said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.If you are in Reader mode please exit and�...