U.S. allies are not pleased with President Trump’s decision to impose steep tariffs on imported steel and aluminum. Nebraska Farm Bureau’s Director of National Affairs Jordan Dux expects Mexico, Canada and the European Union will slap tariffs on U.S. products, including agriculture.
Dux says, “The biggest problem you have here is the uncertainty that is created. Whether it be in the marketplace and the prices that farmers receive. The marketplace reacts to some of these things. You also have uncertainty created in the supply chain. You have other countries that start looking for new places to buy corn, soybeans and Nebraska ag products and they start looking elsewhere to try to diversify their supply chain. They don’t know if the price will be consistent or if the product will be there. From our standpoint the uncertainty that this creates is the biggest problem.”
Dux says there is also a big concern when you start messing with supply chains because there is a risk of other countries putting tariffs on U.S. products. He consumers are also a victim of a tariff war. He says everyone will end up paying more for many products. He says, “This is an Omaha problem, a Lincoln problem, a New York City problem, a Chicago problem. Everyone is going to pay more for products when we start implementing tariffs.”
Dux says from an agricultural standpoint in Nebraska is we have roughly a $2 billion trading relationship with those countries a year and farmers here rely on exports.