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Ag fears reprisals after Trump pledges tariffs on steel, aluminum
Story Date: 3/5/2018
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Source: POLITICO'S MORNING AGRICULTURE, 3/2/18
President Donald Trump's unexpected pronouncement that he would soon authorize tariffs of 25 percent on steel imports and 10 percent on aluminum increased the already-high level of nervousness among the U.S. agriculture industry about becoming the target of countries' retaliatory trade measures. Canada and the European Union have said they will consider such actions, and China was already investigating whether to limit imports of U.S. sorghum in the wake of Trump's decision to impose import restrictions on solar panels and washing machines.
"We have repeatedly warned that the risks of retaliation and the precedent set by such a policy have serious potential consequences for agriculture," U.S. Wheat Associates and the National Association of Wheat Growers said in a joint statement. "It is dismaying that the voices of farmers and many other industries were ignored in favor of an industry that is already among the most protected in the country."
How ag can get caught in trade war cross fire: The United States sends about $14 billion worth of soybeans to China each year. Any hit to that demand could make what is already a difficult financial situation for U.S. farmers even worse, especially after several years of low commodity prices, said American Soybean Association spokesman Patrick Delaney. "It's unfortunate that we have to pay the price when the administration prioritizes another industry over agriculture," he told Pro Ag's Catherine Boudreau.
The decision caught senior lawmakers off guard too, including Senate Agriculture Chairman Pat Roberts. He said on Thursday that the tariffs would be "terribly counterproductive for the agricultural economy."
Perdue's calls for caution ignored? Agriculture Secretary Sonny Perdue told House lawmakers in February that he was urging the administration to be careful not to create an "action-reaction" situation with trading partners, in part because U.S. farm exports are the "tip of the spear when it comes to retaliatory measures."
A USDA spokesperson declined to comment on whether Perdue has had conversations with the president about his decision on Thursday. The spokesperson added in an email that some countries don't play by the rules, and it is the president's job to protect U.S. interests.
"Our U.S. farmers and producers are the best in the world, with products in markets globally. Unfortunately, that makes them potentially vulnerable to retaliation. American farmers are feeding this nation and the world and the Trump administration will continue to promote and protect their interests," the spokesperson said.
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