Impact of Chinese trade war: What American farmers produce is suddenly worth less money
The talking is over. Now we’re fighting a real trade war — and here on my farm in Iowa, I’m on the front line.
The dispute between the United States and China poses a direct threat to my livelihood. Because of the new and emerging tariffs on both sides, the things I grow will sell for less and the things I buy will cost me more.
This week the price of hogs dropped $12 for every pig I sell. This morning, soybeans are down 40 cents a bushel — a $1.7 billion loss to the value of U.S. soybeans. And if I want to make new capital purchases of machinery or grain bins — anything made with steel or aluminum — I’ll have to pay a higher amount.
For years, we’ve engaged in a war of words with China over trade. American officials have complained about everything from China’s currency manipulation and subsidized industries to a trade deficit that hit a record level in 2017. The difference between what Americans bought from China and what Chinese bought from the United States reached $375 billion last year. President Trump recently demanded that the United States reduce this gap by at least $100 billion.
Last month, Trump fired a salvo, announcing new tariffs of 25 percent on imported steel and 10 percent on imported aluminum.
China retaliated a few days ago with a long list of new tariffs, affecting about $50 billion of American-made products. Many fruits and nuts, for example, will face a 15 percent tax. So will a variety of stainless steel pipes.
China also slapped a 25-percent tax on pork products — a category that affects me directly because I raise hogs. We try to sell every part of these animals, from the meat to the offal. Even before the trade war erupted, pork prices weren’t very good. Now they have dropped to the lowest prices since 2003.
http://thehill.com/opinion/energy-environment/381652-impact-of-chinese-trade-war-what-american-farmers-produce-is
= new reply since forum marked as read
* aka republican Draft-Dodger-in-Chief
Reading through the article, the farmer-author had deep reservations about voting for trump and he did it anyway! But now apparently we victims of his vote are supposed to feel sorry for him.
I enjoyed reading the I Told You So comments, I must admit.
Also, I read on the Iowa Soybean Association website an article from early March how soybean farmers are investing into more equipment and more crops planted to gear up for the increased demand from China, so they might be kind of extra screwed with their additional debt.
if only someone had warned them..
