Agricultural News
Trump Slaps China with Another $200 Billion in Tariffs While World Watches to See Who Blinks First
Tue, 25 Sep 2018 10:48:52 CDT
As of yesterday, September 24, 2018, the latest round of tariffs worth $200 billion imposed by the Trump Administration on Chinese goods officially took effect. For now, the tariffs add a ten percent increase to Chinese imports. That amount will climb to 25 percent on January 1, 2019. The Trump Administration says it is prepared to levy an additional $267 billion in tariffs if China takes retaliatory action. Kent Bacus, director of international trade and market access for the National Cattlemen’s Beef Association, says this continued escalation does not come as a surprise as President Trump continues to pressure China into negotiations with the US to reform some of its more dubious trade practices.
“I think this is just the President following through. It’s his commitment to level the playing field with China,” Bacus said. “Keep in mind, China sends a lot more to the US than we send to China. So, they’ve got a lot to lose.”
Bacus points out that by targeting an additional $200 billion worth of Chinese goods on top of the $50 billion worth already in place, the President is effectively creating even more leverage on China to make systemic changes within its economy. He insists, however, that this process will take time to fully play out and says that beef and other ag commodities will certainly remain a target as long as this trade war continues. Bacus is hopeful though that this escalation will eventually lead to some kind of negotiated resolution.
“I don’t really see this ending any time soon, simply because China’s digging in and taking a firm position of not wanting to blink essentially,” he remarked. “So, we’re hopeful this will be resolved but I think we need to be prepared for it to take additional pressure, additional economic loss in China to bring them to the table. At the end of this process- we’ll be able to see restored access for US beef and other US ag commodities but also improved access.”
Learn more about the latest developments in US trade relations including the escalating trade war with China and new improvements to the KORUS Trade Agreement by listening to Bacus and Radio Oklahoma Ag Network Farm Director Ron Hays, on today’s Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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