Impact of retaliatory tariffs on US agricultural exports to be probed by Congress
Today, the US House of Representatives’ Ways and Means Committee will hold a hearing into the effects of tariffs on agriculture.
As President Donald Trump’s global trade fight against “unfair trade practices” continues, many US farmers worry about how the tariffs will impact producer and consumer prices. The White House’s tariff targets, which include China, Mexico, Canada and the EU, have all recently threatened retaliatory tariffs in addition to those already levied, which will likely put US soybeans, wheat, cotton, corn, and pork directly in the firing line.
The soybean sector, for example, stands to lose as much as $624 million as a result of retaliatory tariffs. Indeed, prices have fallen almost a fifth since early May.
Expect several US agricultural industry advocates to voice their concerns to the committee over the trade war’s impact on prices.
However, Congressional Republicans have thus far felt little pressure to oppose the White House’s aggressive trade tactics, providing little impetus to act. But with November’s midterm elections looming and unease growing among the agricultural industry, it is only a matter of time until this issue becomes politically charged.
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