Jul 09, 2018
Post by Freedom Partners
Tariffs work only for a few politically connected industries at the expense of most consumers and businesses. Economists have been saying it for years; history has shown it over and over.
Trade restrictions on America’s trade partners are guaranteed to have negative effects on domestic businesses. Here’s a running list of how Americans are already being hurt by tariffs:
Tariffs Cost Hog Farmers $2 Billion
July 16, 2018: CBS News published an article featuring Jim Heimerl, an Ohio farmer who has seen tariffs make tight budgets even tighter.
Soybean prices per bushel have decreased 19 percent since early May — a 10-year low. Corn prices are down more than 15 percent. Pork producers are expected to lose more than $2 billion per year.
“That means less income for pork producers and, ultimately, some of them going out of business,” said Heimerl, a pig farmer and president of the National Pork Producers Council.
Tariffs Tanking New Hampshire Lobster Business
July 15, 2018: The New Hampshire Union Leader published an article featuring Amy Shafmaster, manager of Little Bay Lobster Co., who said tariffs have cost her company revenue.
The company had been shipping more than 50 percent of its lobsters to China, about 50,000 pounds a week. But then China imposed a 25 percent tariff on U.S. lobster, and the company now needs to look for new customers in the United States.
“We ship to China every week, and all of a sudden we didn’t have any orders,” manager Amy Shafmaster said. “The Canadian lobster is so much cheaper than the U.S. lobster now.”
Steel Tariffs Handcuff Prison Construction
July 13, 2018: KUTV published an article highlighting how tariffs are costing Utah’s prison project $15 million.
A new state prison in Salt Lake County already had to increase its projected cost from $550 million to nearly $700 million earlier this year, inciting criticism. Now, tariffs on steel will increase the cost of rebar, cells, window frames, roofing and more.
“The tariff is definitely having an impact,” said Jim Russel, director of facilities, constriction and management for the prison. “A facility such as this, it’s almost all steel concrete, so it’s going to be a major concern here.”
American Farmers Beaned by Chinese Tariffs
July 9, 2018: The Washington Times Herald published an article detailing the negative effects of tariffs on Indiana’s soybean and corn producers.
Recently China issued a 25 percent tariff on American soybean imports, in addition to cancelling or reselling shipments already scheduled. The toll is heavy for soybean farmers. Soybean prices are down $1.50. Corn prices are also down 45 cents. Purdue University estimates that a farmer with 1,000 acres of soybeans and 1,000 of acres of corn will lose $160,000 in revenue.
“The value of the crop is taking a beating,” said Ronald Burris, a small farmer in Daviess County. “There could be some trying times this fall. I’m glad I don’t have a lot of debt.”
Farmers and Fishers on the Hook for Tariffs
July 10, 2018: USA Today published a story explaining the effects of tariffs on American industry, particularly in farming, seafood-producing and automobile-manufacturing states.
While Chinese retaliatory tariffs are hitting American businesses across the board, workers in Arkansas, Iowa and Nebraska are getting hit hardest, according to a study from the Brookings Institution. About 1.7 million American jobs are affected by China’s tariffs.
“China is a major market for Alaska seafood and it is also a major reprocessing center,” said Alexa Tonkovich, executive director of Alaska Seafood Marketing Institute. “The seafood industry directly employs nearly 60,000 workers in Alaska each year and directly employs more workers than any other private sector industry.”
20,000 Bushels of Beans and Nowhere to Go
July 9, 2018: The Morning Call published an article highlighting Pennsylvanian soybean farmers who are experiencing blows to their businesses due to agricultural tariffs imposed by China.
In Lehigh Valley, farmers have seen soybean prices drop since the United States imposed tariffs on some Chinese goods in March. Prices continue to dive as China recently imposed a 25 percent tariff on American products, including soybeans.
“The margin of profit is low, real low. It’s borderline if we’re going to make it or not,” said Anthony Rinaldi, a soybean farmer in Forks Township. He has some 20,000 bushels of soybeans but is unable to sell them. “Unless the government comes up with some kind of subsidy program, we’re probably all going to be in trouble.”
Tariff Harm Reaches Many Industries
July 8, 2018: Axios published an article about what different industry stakeholders are saying about tariffs.
From commercial fishermen, to dairy farmers, to metalworkers — tariffs are harming many industries and their hard-working employees.
“I have yet to find an example where tariffs have worked for the long term good of the country that first imposes them,” Jeff Schwager, the president of Wisconsin cheesemaker Sartori Company. “If this is going to go on long term, the customers down there will look for an alternative product without the tariffs on it.”
Tariffs Forcing Soybean Farmers to ‘Tighten the Belt’
July 7, 2018: A news package from NPR featured John Heisdorffer, a soybean farmer in Iowa, describing how farmers spent years building up the Chinese market for American soybeans. Because of tariffs, that’s all at risk.
America exports $14 billion worth of soybeans and associated products to China each year. That’s more than half of all soybean exports. Sixty percent of all American soybeans are exported. Chinese-imposed tariffs on agriculture are expected to hit the soybean industry hard. What will Heisdorffer do to prepare?
“I’m going to tighten the belt,” said Heisdorffer, who is also the president of the American Soybean Association. “Probably, if things don’t get straightened around somehow by next year, we may not use the highest-dollar seed we can find. We may not put as much fertilizer on. We have no plans to buy any new equipment, or even used equipment, unless absolutely necessary.”
Tariffs Put Maine’s Lobster Industry in Hot Water
July 6, 2018: CNBC published an article highlighting how tariffs are negatively impacting Maine’s lobster industry.
Peak lobster season in Maine occurs in July and August. Last year, America exported what was worth hundreds of millions of dollars of lobster to China. But now, the industry is unsure how to handle China’s recent 25 percent tariff on many agricultural products.
“A distributor told NBC that he made a $1.5 million investment this spring with expectation that the lobster market in China would continue to grow,” the article stated, “but he is unsure if that was a good plan since 20 percent of the market is now closed.”
Tariffs a Nail in the Coffin for Missouri Manufacturer
July 6, 2018: The Associated Press published an article featuring Missouri-based nail company Mid Continent Nail Corp., and how it’s dealing with steel tariffs.
The raw material used to make the nails is steel imported from Mexico. Because of tariffs on steel, the company is paying 25 percent more than it did before June 1. Nails now cost more, which has turned away costumers. Lower revenue has resulted in 60 layoffs, with the potential for hundreds more.
“We’re making decisions one day at a time,” said Chris Pratt, operations general manager for the plant. “We just need relief as quick as possible. Every day it’s a financial burden. … We’re paying workers that are not able to produce because we’ve shut 50 percent of our production down because of lack of orders.”
Washington Betting Tennesseans’ Farms on Tariffs
July 6, 2018: News Channel 5 Network published an article featuring one Tennessee soybean farmer for whom China’s retaliatory tariffs on soybeans came at an inopportune time.
Will Hutchinson, a farmer in Rutherford County, had already planted 70 acres of soybeans when China imposed tariffs on American agricultural imports in retaliation for tariffs imposed by Washington, D.C. He estimates that tariffs will cost him more than $20,000 this season.
“I’m not sure the people in Washington have a full understanding of what their decisions are doing to us. We need them to come to terms and think about how this is affecting people in the homeland,” Hutchinson said. “We will lose more farmers because of this.”
‘We Live and Die by Trade’
July 2, 2018: The Wall Street Journal published an article highlighting how America’s threats to withdraw from the North American Free Trade Agreement and foreign retaliatory tariffs are giving farmers anxiety about their futures.
Many farmers depend on exporting 20 percent of their products. But Chinese threats of retaliatory tariffs on agricultural products have slashed prices. The total value of America’s corn, soybean and wheat crops this year has dropped some $13 billion (10 percent) since the beginning of June.
“We live and die by trade,” said Arkansas farmer Rusty Smith.
Tariffs on Foreign Cars Would Leave Industry Running on Empty
June 29, 2018: POLITICO published an article featuring General Motors, warning that tariffs on foreign cars would harm workers and customers.
The United States has launched an investigation under a little-used provision in the Trade Expansion Act. If the investigation finds foreign cars present a threat to national security, the United States plans to impose a 25 percent tariff.
“The correlation between a decline in vehicle sales in the United States and the negative impact on our workforce here, which, in turn threatens jobs in the supply base and surrounding communities, cannot be ignored,” GM said. “Alternatively, if prices are not increased and we opt to bear the burden of tariffs or plant moves, this could still lead to less investment, fewer jobs, and lower wages for our employees.”
Gas, Electricity Hikes a Possible Consequence of Steel Tariffs
June 20, 2018: The Hill published an opinion piece highlighting how tariffs on steel could hike gas and electricity prices for consumers.
Pipelines are the best way to transport oil and gas to the refinery or storage hub. But building pipelines takes time and resources. In the interim, railcars are often used while pipes are being laid. Global consulting firm ICF estimates that tariffs could raise the market value of imported line pipe between $4.25 billion and $7.27 billion.
“That additional cost will be passed along,” the article states, “eventually reaching consumers in the form of higher gasoline and electricity prices.”
Companies Reliant on Steel Hurt by Steel Tariffs
June 20, 2018: The Lincoln Journal Star published an article by the Associated Press highlighting how steel tariffs are threatening to put one nail company out of business.
The largest steel nail manufacturer resides in Missouri. Sen. Claire McCaskill said that company has lost nearly half its business. It will sell fewer than 4,000 tons of steel nails in July, when it previously sold 9,000 tons. The company, she continued, is worried about being out of business by Labor Day.
“The customers can easily source nails manufactured in other countries,” McCaskill said.
Industries and Entire Cities Harmed by Steel Tariff
June 19, 2018: WFMJ published a news package highlighting how steel tariffs concern not only one steel fabricator, but its entire city.
Russian steel fabricator Novolipetsk Steel has a subsidiary in Farrel, Pennsylvania, called NLMK. The 25 percent tariff on foreign steel could keep the company from being profitable. That would not be good for Farrel, as the company generates 22 percent of its general fund.
“If [NLMK] were to somehow succumb to the tariffs in place,” said Farrell City Manager Michael Ceci, “that would mean a big loss in revenue to the city and really hurt our ability to provide the basic services to the residents.”
Protectionism Crushes Corn
June 19, 2018: Lincoln Journal Star published an article describing how tariffs are threatening Nebraska’s corn farmers.
The industry now fears retaliatory tariffs from China, after new tariffs on $200 billion of Chinese imports were announced. Retaliatory tariffs are likely to target agriculture.
“Nebraska corn farmers are already struggling to break even due to low corn prices, but these tariffs aren’t hurting just farmers,” said David Merrell, chairman of the Nebraska Corn Board.
“More than one million American jobs are supported by U.S. ag exports alone,” Merrell said.
Steel Purchasing Firms Brace for Tariff’s Impact
June 18, 2018: AgWeek published an article highlighting how a company that manufactures steel grain storage bins and grain-drying equipment in North Dakota is being impacted by steel tariffs.
“As soon as the word ‘tariff’ was muttered, basically steel mills took full advantage of that and created a fairly false sense of demand. At least the prices showed that,” said Josh Rauser, operations manager at Superior Grain Equipment Inc. “It’s come to a head more and more as the months are progressing. As of right now, the steel prices are the highest they’ve ever been, with no return in sight.”
Rauser expects the price of steel to increase by up to 27 percent.
Trade Restrictions Severely Stifle Soy
June 18, 2018: Successful Farming published an article explaining how retaliatory tariffs on American soybean imports could spell disaster for the agriculture industry.
Ohio State researchers found that farmers in Ohio could face a 50 percent drop in farm income. Iowa State found that producers in its state could lose up to $624 million this year, depending on tariff duration and other variables.
“As a soy grower, I depend on trade with China,” said Kentucky farmer Davie Stephens, vice president of the American Soybean Association. “China imports roughly 60 percent of U.S. soybean exports, representing nearly one in three rows of harvested soybeans. This is a vital and robust market that soy growers have spent over 40 years building and, frankly, it’s not a market U.S. soybean farmers can afford to lose.”
Protectionism Benefits Foreign Competition, Hurts US Firms
June 17, 2018: The Wall Street Journal published an editorial featuring one locker-maker who said tariffs could force him to switch from buying American to buying Chinese.
John Altstadt is the president of Lyon Group Holding, which makes lockers for workplaces, gyms and schools. Tariffs on steel have given Chinese competitors an unfair advantage, since there’s no tariff on their lockers or locker components.
Altstadt can’t raise prices on his customers, since they already pay a premium for his fully American-made product. If the tariffs remain, he’ll be forced to buy foreign-made locker components. In turn, that would force him to lay off at least 25 percent of his American workforce, and perhaps sell one of his factories.
Steel and Aluminum Tariffs Raise Prices, Threaten Jobs
June 15, 2018: The New York Times editorial board published an article explaining how retaliatory tariffs on American imports harm businesses in the Midwest.
Less competition from foreign suppliers has allowed domestic steel makers to hike prices. The cost of steel has increased 40 percent since January, according to the U.S. Chamber of Commerce. That extra cost comes out of profits or gets passed on to customers. The new aluminum tariff is having the same effect.
“Threatening an all-out trade war, insulting our next-door neighbor and ally, will not change the nature of our economy, only damage it.” said the editorial.
Tariffs Prompting Higher Prices, Market Uncertainty
June 13,2018: WFAA TV published a news package highlighting how one Dallas company is struggling to deal with steel and aluminum tariffs.
David Yoes is the owner of a family-owned metal fabricator called Cardinal Metals. He has seen some prices increase between 30 percent and 50 percent.
“Moving over from last year, prices have gone up every couple of weeks,” Yoes said. “It’s really thrown a quagmire into the industry.”
According to the article, “A new report from the U.S. Labor Department on Wednesday said that prices climbed 4.3 percent alone in May, the highest surge since 2011.”
Trade Protectionism Leaves a Dent in Duffy’s Business
June 13, 2018: NPR published a segment highlighting how steel and aluminum tariffs are harming one Massachusetts company.
Paul Duffy is chief executive officer of Engineered Materials Solutions based in Attleboro. The company specializes in clad metal products, producing a variety of goods — from pots and pans to electrical switch breakers. For now, everything is good, as the company is expanding. But since the business relies on steel, Duffy is expecting tariffs to cost millions of dollars.
“[The situation] is very significant for us,” Duffy said, “because we wouldn’t want this to turn into a situation where it impacts our staffing or our ability to retain our labor force and grow in the future.”
Trade Protectionism Comes With a Bite
June 7, 2018: The Patriot-News published an article that said despite gains for some steelworkers, tariffs do more harm than good.
The possibility of retaliatory trade restrictions have many concerned. If the United States makes it more expensive to do business within its borders, other countries will do the same.
“There has to be a better way than getting into these battles,” said Mark O’Neill of the Pennsylvania Farm Bureau. “We need opportunities to sell more of our products…not policies or actions that are going to make it more difficult to sell our products.”
American Pork Takes a Hit From Mexico
June 7, 2018: The Star Tribune published an article highlighting how pork farmers are hurt by double-whammy tariffs on pork.
As retaliation for trade restrictions imposed by Washington, Mexico has followed in China’s footsteps and is imposing tariffs on American pork products. For farmers in Minnesota, this could do significant damage.
“The tariff basically raises our price by 20 percent to Mexico…NAFTA and free trade with Mexico is just critical for the U.S.,” said Greg Boerboom, a hog grower near Marshall, Minnesota.
“The longer that U.S. exporters are hobbled by trade restrictions, the greater the potential economic damage, Buhr said. That’s because there are plenty of competitors in global agricultural markets, and for them, ‘this is an opportunity.'”
Tariffs Reveal Their Hidden Costs
June 6, 2018: The Washington Post published an article reporting how one man’s business is being affected by the hidden costs of tariffs.
Bill Adler is the owner of metal-parts maker Stripmatic Products in Cleveland. Last year, the company placed a bid to replace a Chinese company on a contract to make commercial sausage stuffers. But once the White House implemented tariffs on steel and aluminum, prices jumped nearly 50 percent. Stripmatic lost the bid because he could not beat the Chinese company’s price.
“Our customers source on a global market,” Adler said. “I’m going to be at least 30 to 40 percent disadvantaged on steel…I’ve lost my competitive advantage.”
Risking 97 Percent of Industry Jobs
June 4, 2018: An editorial from the Omaha World-Herald highlights how recent tariffs on Canadian imports will harm Nebraska’s economy.
Steel makes up about half the costs of many products made by Behlen Manufacturing, based in Columbus, Nebraska. Its products include grain bins, water tanks for cattle, and farm fences and gates. The price of American-made steel has risen 40 percent since the beginning of the year, meaning costs are rising quickly on the manufacturing and construction industries.
“Without these imports, the U.S. cannot meet growing demand for aluminum,” said the Aluminum Association, which represents American manufacturers. Trade restrictions “put at risk the 97 percent of U.S. aluminum industry jobs in mid- and downstream processing,” the association continued.
Americans Pricing Out Americans
June 2, 2018: The Wall Street Journal published an article showing how, even though tariffs may initially benefit American steel and aluminum industries, their customers are taking a hit.
When manufacturers and fabricators take a hit, end-users bear the burden.
“A few of our customers have moved some of their production back to Europe and Canada because of the increases in prices for raw materials,” said Jerry Pines, chairman of Millenia Products Group, a fabricator based in Itasca, Illinois. He said the effect of tariffs on pricing and availability “has made the marketplace the most difficult place to operate in the 50 years I have been in the steel business.”
Tariffs Sour the Milk Industry
June 1, 2018: The Associated Press issued an article highlighting how tariffs hurt Americans in a variety of different ways.
Nebraska farmer Ben Steffen is a dairy farmer who also grows corn, soybeans and wheat. Several of his products are vulnerable to trade restrictions because he exports a significant amount.
“This is the worst possible thing to have for our milk market, and it’s the same for every other commodity,” he said. Mexico is the largest customer for American exported milk. “These are important relationships.”
Harm Trickles Down the Production Line
May 31, 2018: Duluth News Tribune published an article explaining how the unpredictability of tariffs create turmoil in the agriculture industry — as well as related industries.
“Mexico is a huge concern to us ag exporters because that has become a major market for us, as well,” said Burce Abbe, executive director of the Midwest Shippers Association.
“We’ve sought to really convince the rest of the world that the U.S. is the most reliable supplier they can find. So, it’s very worrisome when we get into these unpredictable kinds of actions that almost invite or guarantee retaliation by the other sides,” said Abbe.
From Montana Farm to World Market
May 31, 2018: Montana Public Radio published a news package featuring Michelle Erickson-Jones, a farmer from Broadview, Montana, speaking about the importance of trade.
“We depend on free trade policies to maintain our export markets,” she said. Erickson-Jones is also the president of the Montana Grain Growers Association.
“Crops that we grow here on this farm are exported across the globe,” she said. “Policies that restrict trade would be devastating for farms like ours. Someday, I’d like to pass the farm down to my boys.”
3 Jobs Lost for Every 1 Gained
May 29, 2018: Trade Partnership Worldwide LLC and The Trade Partnership released a report describing the negative effects tariffs on motor vehicles and parts could have on other industries.
The report estimates that a 25 percent tariff “on U.S. imports from all countries of automobiles, SUVs, light trucks, other vehicles and parts” would create 92,400 jobs in the automotive industry, with the possibility to create more than 40,000 additional jobs in related industries. However, 292,411 would be lost as the effect of tariffs take their toll on the rest of the economy.
“About three jobs would be lost elsewhere in the economy for every U.S. motor vehicle job gained,” the report states, and “GDP would decline by 0.1 percent as higher costs, net job losses, and declines in producer and consumer spending power work their ways through the economy.”
Not Just Money — Tariffs Cost Jobs, Too
May 16, 2018: The Omaha World-Herald published an article in which the chairman of Behlen Manufacturing Co., a global leader in steel fabrication, says steel tariffs could cost the company between 50 and 60 jobs.
As plans were announced to impose tariffs on steel imports, foreign producers were discouraged to sell in America and the price of domestic steel increased as much as 40 percent.
Tony “T.R.” Raimondo, chairman of the Columbus, Nebraska-based company, mentioned that it was likely to lose a large customer if U.S. steel prices remained elevated.
Tariffs Causing “Cease-Hire”
May 9, 2018: A Reuters article highlighted how tariffs negatively affect small manufacturers, including:
- Mike Haberman was seeing a “booming demand” for his construction equipment and he was planning to hire at least 30 more workers for his Ohio manufacturing facility, Grandall Industries. But because of a steel tariff, the cost of steel used in Grandall’s telescopic excavators and vacuum trucks rose by one-third. Haberman had to postpone additional hiring.
- Mike Schmitt, president of The Metalworking Group in Ohio, said his company lost about 1,000 hours repricing and renegotiating contracts because it could no longer honor old prices. The company also had to delay plans to spend some $500,000 on equipment and hire more employees because prices were so uncertain.
- Vollrath Company in Wisconsin makes cookware and bakeware. Local mills couldn’t meet its demand, so it continued buying from China. The company’s chief financial officer said the tariffs would make its aluminum products at least 20 percent more expensive than the foreign competition’s prices. Input costs were estimated to increase by as much as $6 million. The company also had to suspend hiring.
April 22, 2018: The Kansas City Star editorial board published an editorial highlighting how a retaliatory step by China drove down grain prices in Kansas, even before tariffs are imposed.
In February, China announced its intent to investigate alleged grain-dumping into its markets. It was seen as a retaliatory action in response to the threat of steel and aluminum tariffs.
Dan Atkisson, a sorghum grower in Stockton, Kansas, recalled that prices “fell over 90 cents.” Sorghum is “the backbone” of Kansas’ farm production. Then China announced a 178 percent tariff, which induced another round of worry into the sorghum market.
Farmers Need NAFTA
April 18, 2018: Fortune published an op-ed written by a seventh-generation farmer and chairman of the Agri-Business Committee, highlighting the unintended consequences of tariffs.
Cattle farming is a way of life for Casey Guernsey’s family. Guernsey Farm, in Harrison County, Missouri, is one of many farms across the Midwest that needs to avoid a trade war at all costs.
“Now, as tensions between the U.S. and China continue to escalate, the future of critical trade deals like the NAFTA are more important than ever,” Guernsey writes. “Without NAFTA, our ability to sell homegrown goods to key markets around the world hangs in the balance.”
Extra, Extra: Can’t Read About It
April 18, 2018: Tampa Bay Business Journal published an article announcing the Tampa Bay Times was planning to cut about 50 jobs because of increased newsprint prices resulting from tariffs.
Tampa Bay Times Chairman and Chief Executive Paul Tash wrote an article soon after the tariffs on the imports of newsprint from Canada were announced. He warned that the price would jump from $600 to $800 per ton. The publication uses some 17,000 tons every year, meaning more than $3 million would be added to the newsprint bill.
April 18, 2018: Bloomberg published an article featuring a California company whose 2018 profit was wiped out due to tariffs on steel and aluminum.
Pacific Coast Producers is a cooperative that cans produce from 168 family farms. Trade restrictions caused the price of cans to increase by some 9 percent, which the cooperative now must pass on to consumers.
“We’re going to have to try to get these increases in the markets,” he said. “As with all tariffs, ultimately the consumer pays the bill.”
Can a Kid’s Ride Get an Exemption?
April 16, 2018: The Washington Post published an article about how American companies are seeking exemptions from steel tariffs.
Scott Way, a Texas resident, looked all over the country for steel rail for the small steam train, but ended up ordering from China when he couldn’t find anything. He signed the order days before tariffs were announced. He’s hoping he’ll be granted an exemption.
“This is the first time I have ever imported anything, let alone steel,” said Way, owner of a family 19th-centruty-pioneer-town-style resort. He was looking to build a train kids’ ride.
No Barns for Young Pigs
April 16, 2018: The Tennessean published an article highlighting how tariffs affect the Tennessee farming industry.
Plans to build 30 new barns for pigs became tentative for Jimmy Tosh after trade restrictions were imposed on steel and China levied tariffs on pork. Rebar pricing increased 17 percent, making barn construction more expensive. Tosh expects to lose revenue in pork sales, as well.
“It’s becoming much more difficult to be a Republican in this type of an environment,” he said. “The Republican Party has always stood for free trade. They seemed to have moved away from it.”
The End Game for Pork and Beans
April 13, 2018: NPR published a news report in which Nebraska farmer Joe Fryman says he wonders if he’s being used as a pawn in a chess game.
China is America’s No. 2 market for agricultural exports, and Nebraska is at the heart of that. Many farmers were immediately alarmed and fearful of the consequences of China’s tariffs on American pork and soybean exports.
“I just wish we knew what the end game was in this whole tariff thing,” Fryman said. “And maybe there is no end game. Maybe we’re playing this from the hip as we go along here.”
April 13, 2018: The BBC asked, “Who is losing out from Trump’s tariffs?” The answer: Many different people. One of them is Randy Goodman.
Goodman is an executive at Georgia-based Greenland America, which buys and sells scrap metal around the world.
“The issue is that these other countries or even the domestic consumers … can’t pick up all the slack, so there will be excess material,” he said. “There will be an overhang in the market that will eventually affect the pricing.”
What About the Greater Goods?
April 4, 2018: The Nebraska Farm Bureau releases a statement on China’s retaliatory tariffs — after the U.S. imposed tariffs on Chinese-made steel and aluminum, and the Chinese imposed tariffs on American exports of pork and soybeans.
“These actions have cost farmers hundreds of millions of dollars in lost value in agriculture markets at a time when they can least afford it,” the statement said. “Nebraska farmers and ranchers and the markets they rely on should not be sacrificed as a negotiation tactic. It’s critical the United States and China stop the ‘eye for an eye’ tactics and return to negotiations that serve the greater good for both interests.”
Triple-Whammy in North Dakota
April 4, 2018: West Fargo Pioneer published an article in which a grain merchandiser, an executive from a steel fabrication company and director from a beer company — all based in North Dakota — say mere price uncertainty is causing upheaval.
Even though nothing was in effect, the fact that China had expressed its intent to impose a 25 percent tariff on American imports caused a price panic.
“Weekly, we’re getting changes in prices going up, up, up,” said Lee Holschuh, president and chief executive officer of Mid America Steel Inc. “For us, it’s one of the raw material costs. It’s the eventual consumer of our product — a school, a shopping mall, whatever — that is going to have to pay more or cancel the project if the cost goes up too much.”
Fear of the Unknown
April 3, 2018: A report from KSN featured a Kansas farmer who says he is “as concerned about prices now as he has ever been” because of China-imposed tariffs on pork and other products.
“The talk about NAFTA, and the talk about trade with China, TPP, those were all good things for agriculture,” said Doug Claassen, who runs a family hog, cattle and farming operation outside Whitewater. “And it worries me that the future is unknown.”
Tariffs Have Bad Timing
March 23, 2018: KVRR published an article in which a soybean farmer based outside of Valley City, North Dakota explained that timing could not be worse for tariffs.
Monte Peterson is a soybean farmer and vice president of the U.S. Soybean Export Council. He explained that of the 7 million acres of soybeans grown in North Dakota, 71 percent is exported to China.
“The timing is not great,” he said. The farm economy was, at that point, down 50 percent and crop prices were down 40 percent. “We depend on those exports to support our business.”
Argentina Looks Better than America
March 6, 2018: Bloomberg published an article announcing that DowDuPont Inc., the world’s largest chemical company, is considering Canada or Argentina — instead of the United States — for its next major investment due to steel tariffs.
“You eventually get yourself to the point where you are saying, ‘Should I really be building that here or somewhere else?’” said Chief Operating Officer Jim Fitterling. “We’ve got opportunities in other places like Canada, like Argentina. All of them right now are on the radar screen.”
Tennessee Will Have to Wait
March 2, 2018: The Tennessean published an article in which a foreign company halted plans to expand and open shop in the United States because of trade restrictions on aluminum and steel.
Sweden’s Electrolux is Europe’s largest home appliance manufacture. It was planning a $250 million plant expansion in Springfield, Tennessee. But those plans are now on hold, due to the tariffs.