The trade war between the United States and China has been at the epicenter of President Trump’s agenda and the US farming community backed the President in his aggressive negotiations against, what many thought to be, unfair trade practices. Today, though, the President’s tariff escalation resulted a Beijing counter-attack that sent shockwaves to the US economy.
“Farmers were his base. They helped elect this president … and now he’s turning his back on America’s farmers when we need him the most,” John Wesley Boyd Jr., a soybean farmer in Baskerville, Virginia, told CNN’s Brianna Keilar on Monday.
As CNN reports, China raised the tariff rate on $60 billion of US items, as well as,
The escalated tariffs don’t hit agricultural products directly, since most were already facing a 25% tariff imposed by China last year. But the news still sent commodity prices plummeting.
Trump offered aid payments last year to farmers hurt by retaliatory tariffs, worth about $12 billion. It softened the blow, but Kimberley says they’ll need more if commodity prices remain low.
Tyson Foods Inc. and Cargill Inc. currently provide Walmart with most of its beef, and will continue to do so. Walmart is Tyson’s biggest customer, accounting for 17 percent of its revenue, according to Bloomberg data.
Speaking to reporters Monday, Trump said he would use some of the tariff revenue — which is paid by US importers — to help subsidize farmers.
In an April survey conducted by Purdue University and the CME Group, only 22% of farmers stated it was a “good time” to make large farm investments.
Read the full story on CNN.com.
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- China Slaps New Tariffs on the U.S., and Trump’s Plan to Deal With It Is Not Great (Slate.com)
- U.S. prepares to slap tariffs on remaining Chinese imports, which could add levies on roughly $300 billion in additional goods (The Washington Post)
- Kudlow: ‘Both sides will suffer’ in U.S.-China trade war (Politico)