These Are the U.S. Farm Commodities China May Target in Trade Dispute
U.S. soybean exports valued at $14 billion could be at risk
Other products that could suffer: pork, alfalfa, sorghum
Now that President Donald Trump has announced punitive tariffs on Chinese goods, attention has switched to possible retaliatory measures. U.S. agriculture is a clear and obvious target.
U.S. farmers export more produce to China than any other country
By hitting commodities such as soybeans and pork with tariffs, China would also be singling out products grown in the American rural heartland, a key constituency that helped elect Trump.
Here’s a brief rundown of what may be at risk: (cont'd)
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Here’s a brief rundown of what may be at risk.
Soybeans
This humble oilseed is of huge importance to China, where it’s used as animal feed and in a wide variety of foods and household goods. The soybean trade is also vital to U.S. farmers: a third of their production, valued at $14 billion annually, goes to China, according to the American Soybean Association.
Targeting soybeans is clearly on the mind of the Chinese government. This week an editorial published in the Global Times, a newspaper affiliated with the ruling Communist Party, railed against alleged soybean dumping.
Should China pull the trigger, the implications for U.S. soy farmers could be severe. "The tough line the administration is taking on China will lead to retaliation that will cost many farmers their livelihoods," the soybean association said Thursday.
Pork
The U.S. exports about a fifth of its pork production, and China -- the world’s largest consumer of the meat -- is among the largest buyers. The U.S. shipped about 309,000 metric tons to China last year, USDA data show. Combined with Hong Kong, it ranks second, behind Mexico, according to the U.S. Meat Export Federation.
U.S. pork could be an “easy target," according to a report this week by analysts at Vertical Group.
U.S. tariffs we put on Chinese products hurt those Chinese businesses. But apparently what Trump hasn't figured out yet is that the Chinese can retaliate-- and do the same to us! (Putting tariffs on things they buy from the U.S., making our products too expensive and therefore hurting American business).
And that means American production of these products will be cut...and American workers laid off (or work fewer hours and get less pay).
Perhaps Trump is unfamiliar with Newton's Third Law of Motion.
Indeed!
In fact, here's what he said about trade wars (this was back on March 2nd):
"Trade wars are good, and easy to win"
Even if new tariffs on steel and aluminum spark an international trade war, President Donald Trump is confident the United States would come out on top.
Trump announced Thursday that he will impose 25 percent tariff on steel and a 10 percent tariff on aluminum as early as next week in an effort to force partners into "fairer" trade agreements.
The move helped spark a 420-point drop in the Dow Jones industrial average Thursday, as shares of Boeing and General Motors and other manufacturers that use steel and aluminum fell. (link)
That led to a shocking 420 point loss for the DOW. But today's announce on more tariffs led to a 700 point drop!.
Wall Street will be anxiously watching to see how the Stock Market further respond tomorrow....
Well-- because what just happened, he may be starting to get a clue:
China hammers U.S. goods with tariffs
China has increased tariffs by up to 25 percent on 128 U.S. products, from frozen pork and wine to certain fruits and nuts, escalating a dispute between the world's biggest economies in response to U.S. duties on imports of aluminum and steel.