AFBF: Dropping Trump Era Tariffs Would Be Beneficial
One American Farm Bureau official says the U.S. and China want to reduce or drop Trump-era tariffs on a range of goods, possibly including farm goods, but any such deal if a far way from official. AFBF Senior Director of Congressional Relations Dave Salmonsen said both sides have signaled an interest in reducing the tariffs, but there’s still a big question that must be answered, first; will the Chinese reduce or eliminate some of the tariffs they put on in retaliation for those U.S. tariffs back in 2018?
And as Salmonsen pointed out the impact on farm country was not small.
“These Chinese retaliatory tariffs affected agriculture, of course, we all saw the big downturn in sales to China in 2018 and 2019. They since have granted waivers, and so our exports to China came back. But the tariff regime still exists, meaning they could put tariffs back on U.S. products anytime.”
Salmonsen noted while the Phase I China helped farm country in several ways, China did not grant waivers to some ag products like ethanol and distiller dried grains. On balance though, Salmonsen said things have improved.
“And of course, now our exports have rebounded. Last year, we exported over $35 billion in ag products to China, so it still hangs out there. Trade is happening, but we’re all in favor of trying to get out from under this tariff regime," Salmonsen added.
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