Trade war seeing another escalation

Aug 9, 2019  | 2 min  | Ep4451

President Trump’s threat last week for another round of tariffs on Chinese goods did not sit well with several sectors of the U.S. economy.

This week, the Chinese responded to the salvo with U.S. farmers, ranchers and consumers in the middle.

Peter Tubbs has more. Producer Contact peter.tubbs@iptv.org

Both commodity and financial markets roiled this week after President Donald Trump proposed a new round of tariffs on imports from China. The Chinese government responded by halting all purchases of farm commodities from the United States. China is the second largest export destination for U.S. farmers.

Dale Moore, Executive Vice President, American Farm Bureau Federation: "Well, their announcement that they are going to basically stop importing all U.S. farm commodities products, to quote our president Zippy Duvall, when he said yesterday, it is a body blow.  And I don't know any other way to describe it.  It is a punch in the gut that is just taking away one of the most important and largest markets that we have spent decades developing."

The new proposed tariffs, which will take effect September 1st, will cover the $300 billion of goods imported from China not currently subject to tariff. The new batch of tariffed goods will cover more consumer products, raising prices for both importers and American consumers.

China also caused market drama when it announced that the Yuan would be allowed to drop to an 11-year low against the dollar. It has already lost 5% of its value this year. The President charged that action constitutes currency manipulation.

The Trump Administration is currently doling out its second round of tariff relief checks to commodity farmers, relief that could total $26 billion dollars once completed. The President questioned reports of producer unrest in rural America, and believes farmers are happy with the financial assistance.

President Donald Trump: “Well, you interviewed the wrong farmer, number one. Number two: Any amount that China sucks out, we’re making up out of the billions of dollars that we’re taking in. Remember this: Our country is taking in billions and billions of dollars from China.  We never took in ten cents from China.  And out of that many billions of dollars, we’re taking a part of it, and we’re giving it to the farmers because they’ve been targeted by China.  The farmers — they come out totally whole.  So you interviewed the wrong farmer, but that’s all right.”

For Market to Market, I’m Peter Tubbs

Grinnell Mutual Insurance
Sukup
Accu-Steel
ICN