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Farmers Brace for a New Round of Trade Wars
Farm interest groups are deeply concerned that unilateral actions by the new Trump administration to substantially increase tariffs on all or many imports from major trading partners could harm US agricultural exports and crop and livestock prices. Producers are also concerned about the impact of tariffs on imports of inputs like fertilizer and feeder cattle.
These concerns stem from the history of US trading partners’ responses to the previous Trump administration’s trade war initiatives. The retaliations included significant restrictions targeting US exports of commodities such as soybeans, hogs, and corn, which resulted in lower prices for US farmers’ products.
The US agricultural sector is not only concerned about short-term losses of exports and export revenues. It is also worried about permanently losing trade opportunities as major importers, such as China, look to competitors in countries such as Argentina and Brazil as more reliable suppliers of grains and oilseeds for food and animal feed.
These concerns stem from the history of US trading partners’ responses to the previous Trump administration’s trade war initiatives. The retaliations included significant restrictions targeting US exports of commodities such as soybeans, hogs, and corn, which resulted in lower prices for US farmers’ products.
The US agricultural sector is not only concerned about short-term losses of exports and export revenues. It is also worried about permanently losing trade opportunities as major importers, such as China, look to competitors in countries such as Argentina and Brazil as more reliable suppliers of grains and oilseeds for food and animal feed.
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