Soybean producers warn that farms could go under as the Trump administration hits China with new tariffs of 145 percent.According to The New York Times, after China announced retaliatory tariffs on American exports on Wednesday, Treasury Secretary Scott Bessent responded with a bold and somewhat unexpected statement: “So what?” This statement reflects the Trump administration’s belief that the United States has the upper hand in a trade war with China due to China’s heavy reliance on exports to the US.
However, Beijing’s decision to raise tariffs on American imports to 84 percent in response to President Trump’s tariffs could have a more significant impact than Mr. Bessent’s statement suggests. Sean Stein, president of the US-China Business Council, warned that this retaliation could greatly affect American companies that have been successful in selling to China, leading to a slowdown in trade.
The tariffs imposed by both China and the US cover a wide range of industries, from aviation to agriculture, and will likely have a significant impact on trade between the two countries. This loss of the Chinese market will hit agricultural workers in many red states particularly hard, potentially affecting the same voters who helped Trump win the presidential election.
Despite initiating a pause on “reciprocal” tariffs imposed on other countries, President Trump announced even higher tariffs on China on Wednesday. This move offers little relief for farmers who are concerned about the long-term effects of a trade war with China on their largest export market.
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