China is threatening to impose a new series of trade tariffs on dozens of American products, including soybeans. It’s another blow to Nebraska farmers who are already struggling with low commodity prices.
Paul Sedlacek, with Advantage Commodities in Pierce, says we’re seeing the trade war escalate.
“One move and then there’s a countermove, and another countermove and another move and it all snowballs,” Sedlacek says. “Nobody knows where this is going to stop.”
Sedlacek says the back-and-forth tariff threats will hurt both the U.S. and China.
“History has proven that these are not good things,” he says, “and it’s proving it once again.”
China’s latest threat, issued Wednesday, includes soybeans and 105 other U.S. products that would be hit with 25% levies, worth about $50-billion. No date was set for the tariffs to be enacted.
Sedlacek says there could be significant losses of export markets for American producers.
“If somebody starts to look to Russia to buy things or Brazil or Argentina or wherever it might be instead of the U.S.,” Sedlacek says. “That’s the long-term effect.”
The Nebraska Soybean Board says half of all state-grown soybeans are exported.
Tariffs were also announced by China on Monday targeting dozens of U.S. products, including pork and ethanol. The day before, the White House unveiled plans for 25% levies on a wide range of goods from China, some 1,300 items worth $50-billion dollars, everything from shoes to furniture to phones.
Thanks to Jerry Oster, WNAX, Yankton