Tag Archives: tariffs

NCOLN, NEB. – “Today’s action by President Trump to impose tariffs on a number of Chinese goods in order to address the United States’ trade imbalance with China is cause for great concern.”

“This move has the potential to launch the U.S. into a trade war with China. While we anticipate retaliatory measures to be both strategic and overtly political, it is likely, a number of agricultural products will be targeted for retaliation.”

“China remains the number one customer of U.S. soy, buying more than one of every four rows of soybeans growing in U.S. farm fields. With Nebraska farmers and ranchers already suffering through a 50 percent drop in net farm income in the past five years, this action has the potential to make this situation considerably worse.”

“These tariffs may be aimed at China, but the cost will be incurred on American consumers who will pay more at the checkout line for the items they shop for every day. We can’t emphasize enough the importance of trade and how concerning this latest action by the Trump administration is for Nebraska farmers, ranchers, and consumers.”

US soyabean exports will be targeted if the Trump administration imposes further tariffs on China, said Hu Xijin, editor of nationalist tabloid the Global Times, which is controlled by the Chinese Communist party mouthpiece the People’s Daily. “I’m sure if Trump imposes high tariffs on imported products from China, the backlash will first come to American soybeans worth over $10 billion sold to China every year. This is no casual comment. Please read tomorrow’s Global Times for further information,” Mr Hu, who often writes the paper’s editorials, said on Twitter. While not directly expressing official Chinese Communist party opinion, Mr Hu’s editorials are often seen as reflections of the more bellicose end of policy positions under consideration by Beijing, and are sometimes written as a way of gauging international reaction to potential policies. With China the biggest buyer of US soyabeans — accounting for about 60 per cent of total exports last year, worth $12.4bn — the American Soybean Association last week said it was concerned about a potential trade war, and requested a meeting with President Trump. But analysts have suggested that China would be unable to quickly diversify its soyabean imports away from the US, because its other main supplier, Brazil, lacks sufficient stocks. Its domestic production is far below its soyabean needs, mostly for animal feed.

OMAHA (DTN) — U.S. rice, cranberries, sweet corn, orange juice, kidney beans, peanut butter, tobacco and whiskey are among the agricultural products listed by the European Union to face retaliatory tariffs in Europe due to the Trump administration’s push for tariffs on steel and aluminum imports.

The European Commission released the full list of products on Friday, which includes a long list of various metal products, as well as consumer items ranging from t-shirts and jeans to motorcycles, home appliances and power boats. EU officials released the list as part of a 10-day comment period for affected people to make their case to the EU Commission about why a particular product should be included or exempt from the tariffs.

The EU exports about $6 billion in steel to the U.S., as well as about $1.2 billion in aluminum. President Donald Trump, arguing steel and aluminum imports are a threat to national security, announced last week his administration would impose a 25% tariff on most steel imports and a 10% tariff on most aluminum imports. Canada and Mexico are exempted from these tariffs, for now.

The overall impact dollar-wise is small in the grand scheme of U.S. agricultural exports forecast at $139.5 billion, but a few products will be hit harder than others.

The executive director of the Wisconsin State Cranberry Growers told Bloomberg News earlier this week that the industry exports about 95 million pounds of cranberries to the EU, or about 12% of U.S. production.

The EU is not a major buyer of U.S. rice compared to other countries, but does account for about $42 million in sales, according to USA Rice. For the 2017-18 marketing year, which ends July 31, the U.S. has seen commitments for 16,411 metric tons of rice sold to the EU, according to USDA export data.

The U.S. is among the top exporters of oranges to the EU, but the U.S. is the third-largest foreign supplier of orange juice at 15,000 metric tons for the 2016-17 marketing year. Still, the volume pales in comparison to how much the EU imports orange juice from Brazil (591,000 mt) and Mexico (34,370 mt).

Cranberries are a relatively small crop, but Wisconsin is the largest state for cranberries, producing about 62% of the crop in 2017, according to NASS. Massachusetts, New Jersey, Oregon and Washington are the other major cranberry-producing states.

A coalition of agribusiness groups, Americans for Farmers and Families, expressed concern about the EU list, stating that the potential for retaliatory tariffs “is not a zero-sum game.”

Joshua Baca, a spokesman for the coalition, said, “Rural America will feel the impact of retaliatory tariffs quicker than any other industry. Americans for Farmers and Families wants to ensure that action taken on trade policy protects our farmers, the food and agriculture industries, and does not compromise negotiations for a modernized North American Free Trade Agreement.”

Baca called on the Trump administration to reconsider the tariffs. (https://goo.gl/…)

A report on the job impacts of the tariffs was also released earlier this week. Agriculture would lose nearly as many jobs as an industry as the steel and aluminum industries would gain from President Trump’s steel and aluminum tariffs.

The report by the Washington, D.C.-based firm Trade Partnership Worldwide LLC stated agriculture would lose 24,054 jobs while the food-processing industry would lose another 6,000 jobs. The tariffs could increase employment in the steel and aluminum industries by 26,346 workers, the report stated.

The report states 18 jobs would be lost for every job gained and would cost as many as 495,136 jobs in the process. California, Texas, New York and Florida would see the most jobs lost, losing a combined 158,700 jobs.(https://goo.gl/…)

The European Union classifies cranberries as a retaliation target in response to President Trump’s steel and aluminum tariffs. Bloomberg reports cranberries are among a basket of all-American goods, from peanut butter to bourbon whiskey and Harley Davidson motorbikes, singled out by the European Union.

A lawmaker from Wisconsin says U.S. dairy is on the list as well, though the official list has not been made public yet. For the U.S. cranberry sector, 95 million pounds of cranberries are exported to the EU each year. That’s more than any other destination, and accounts for about 12 percent of domestic production.

Cranberry Institute executive director Terry Humfield says targeting the small ag sector “does not make any sense.” Cranberry production is a niche market in the U.S., with roughly just 1,200 producers. However, the United States is the world’s largest producer of cranberries, with output up 20 percent since 2010.

Meanwhile, Democrat Ron Kind, a U.S. Representative from Wisconsin, says he has spoke with a representative from the European Union recently, who has confirmed U.S. dairy will also be targeted.