Trade war escalates with new tariffs on Chinese imports; American farmers vulnerable in international markets - Entrepreneur Generations

The trade war between the United States and China escalated again when President Trump said the U.S. would put a 10 percent tariff on an additional $300 billion worth of Chinese imports starting in September.

The announcement Thursday, as trade talks continued, came as the president complained China didn’t follow through with a promise to buy more agriculture products from U.S. farmers. He also charged that China hasn’t stemmed the flow of fentanyl to the U.S.

“We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing,” the president said on Twitter. “More recently, China agreed to buy agricultural product from the U.S. in large quantities, but did not do so.”

The new tariffs would be in addition to 25 percent on $250 billion worth of goods from China that the U.S. previously imposed.

American farmers are particularly vulnerable in the trade war, but so far it’s not clear if the uncertainty caused by Trump’s policies will hurt his support in rural communities.

In May, the administration announced a $16 billion farm aid package for farmers hurt by the trade war with China.

One political group, Tariffs Hurt the Heartland, issued a statement Thursday warning that farm failures could result from Trump’s actions.

“The administration is doubling down on a failing strategy. Nobody wins in a trade war, and raising tariffs further on American businesses and consumers will only result in slower economic growth, more farm bankruptcies, fewer jobs and higher prices. These new tariffs will target the products American families buy every day, ranging from shoes and apparel to toys and electronics,” the group’s spokesman said.

"We all agree China is a bad actor, but an unprecedented tax hike on hardworking Americans is not the answer. It's time for the administration to come up with a real strategy, put a stop to harmful tariffs and finally deliver the trade deal Americans were promised."

Philip Bump, of the Washington Post, commented this week on the flow of farm aid money. Nine of 10 counties that supported Trump in 2016 have received payments so far from the aid package.

“The politics here aren’t complicated. Farmers are almost exclusively in rural counties, places that Trump won handily in 2016. Letting farmers suffer from his trade war simply wasn’t an option for Trump,” Bump writes.

from The Rural Blog https://ift.tt/317iLW4 Trade war escalates with new tariffs on Chinese imports; American farmers vulnerable in international markets - Entrepreneur Generations

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