Categories Retail, U.S. Markets News

Tariffs and trade war hurting American farmers

The trade war between the US and China is hurting American farmers, particularly those who cultivate soybeans. Soybeans is the second most valuable crop in the US and as per data from the US Department of Agriculture, the total value of soybeans produced last year was $41 billion. Corn takes first place with $48.5 billion. Of the total value of the agricultural products covered in the report, soybeans accounted for around 29%.

The recently imposed tariffs are hurting American farmers, who now incur higher costs, which is weighing down on their profits. Soybean prices have been falling since the start of trade tensions earlier this year, lowering revenues and hurting profits.

Arkansas, which relies primarily on agriculture and soybeans, is reeling under the pressure of the trade war. According to a report by CNBC, Governor Asa Hutchinson expressed support for President Trump’s policies in general but pressed for a resolution to the trade tensions as fast as possible. Arkansas exports around $850 million of soybeans every year, making the crop its biggest export. The recent tariffs are likely to cut it by more than half, the report stated.

There are industry experts who believe that China has quite a few tricks up its sleeves and if the US does not watch out, it will end up losing a couple of bets to the Asian country in the trade game. When it comes to soybean imports, China has the option to both increase its own production as well as increase imports from other soybean-producing countries such as Brazil.

Amid its spat with the US, China can strike friendships with other countries by introducing policies and making deals that boost trade, thereby protecting and strengthening its economy. The US must take measures to ensure that its own industries do not end up paying a high price, particularly the agricultural industry.

Most Popular

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Walgreens Boots Alliance set to report earnings next week. Here’s what to expect

Walgreens Boots Alliance, Inc. (NASDAQ: WBA), the drug store chain that is expanding into a diversified healthcare provider, is on a restructuring drive aimed at better aligning the business with

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top