Trump’s tariffs expected to reorder trade flows

Published Nov 14, 2024

Tridge summary

Iowa farmer Bob Hemesath is concerned about Donald Trump's proposal to impose a 60% tariff on Chinese goods and a 10% tariff on all other imports, citing the potential negative impact on U.S. agriculture. Economists warn that these tariffs could push U.S. import duty rates back to 1930s-era levels, leading to inflation, a collapse in U.S.-China trade, and a significant shift in supply chains. The National Corn Growers Association and American Soybean Association have forecasted deeper U.S. crop export losses and lower domestic prices if a new China trade war breaks out. Despite these concerns, Trump's campaign suggests that a 10% universal tariff would not significantly increase prices and could stimulate economic growth and job creation.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Iowa farmer Bob Hemesath is worried that U.S. agriculture will pay dearly if Donald Trump, who won last week’s presidential election, makes good on a vow to swiftly impose a 60 per cent tariff on Chinese goods and at least a 10 per cent levy on all other imports. It could be a much worse rerun of the Republican former president’s 2018-19 trade war with China that hit U.S. farm goods with retaliatory tariffs and shifted Beijing’s purchases to Brazil and Argentina, said Hemesath, who grows corn and soybeans and raises hogs on 2,800 acres of land in northeastern Iowa. “When we start putting tariffs on others, usually the retaliatory tariffs end up on American agricultural products,” said Hemesath, who chairs the Farmers for Free Trade advocacy group. “What I worry about is that when you do those kinds of things, you lose that market share, and you just don’t get that market share back,” he said. Economists say that Trump’s tariff plans, likely his most consequential economic policy, ...

Source: UkrAgroConsult