Retaliatory tariffs during trade war led to $27 billion in lost agricultural exports by end of 2019, USDA report concludes - Entrepreneur Generations

Percent share of estimated annual losses caused by
retaliatory tariffs, by commodity. (USDA chart)

The Trump administration's trade wars with China and other nations led to a significant reduction in U.S. agricultural exports, a loss of more than $27 billion from 2018 through the end of 2019, according to a new report from the Agriculture Department's Economic Research Service.

The federal government tried to make up for the loses with $28 billion in payments, but the payouts weren't always equitable; corn farmers were paid too much, the Government Accountability Office concluded. Yet, soybeans were the hardest-hit commodity, accounting for nearly 71% of losses, or $9.4 billion annually, the ERS report says. The next largest annualized losses came from sorghum ($854 million), and pork ($646 million).

China accounted for about 95 percent of the losses, or $25.7 billion, followed by the European Union ($0.6 billion), and Mexico ($0.5 billion). Tariffs from Canada, Turkey and India accounted for smaller losses. The U.S. and China signed a trade agreement in January 2020, but China did not fulfill its commitment to buy $80 billion in U.S. agriculture, seafood and other food exports by the end of 2021. Through November 2021, China had only purchased $56.3 billion.

from The Rural Blog https://ift.tt/3AbS8Cl Retaliatory tariffs during trade war led to $27 billion in lost agricultural exports by end of 2019, USDA report concludes - Entrepreneur Generations

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