New Tariff Threats Have Farm Country Concerned

It should come as no surprise; changes continue to come in the world of trade.  That includes the recent delays in the implementation of country-specific tariffs, as well as new threats of tariffs against the European Union, Mexico and Brazil.

The new deadline to circle on the calendar is August 1st.

Dave Salmonsen, senior director of government affairs for the American Farm Bureau, said farmers could face the brunt of impacts if tariffs are implemented.

“I think you'd get a couple of impacts," he noted.  "One, their products coming in here, of course, would be more expensive. Some of these tariffs range from 20 to 30 percent or higher. Things that farmers use, inputs that come from overseas, would definitely become pricier. If tariffs go into effect, countries will respond. Either they retaliate with their own tariffs on us, or they may look elsewhere to buy.”

Is History Any Indicator?

Salmonsen said it’s still too early to know how trading partners will react.

"What we've seen, in the past, China put on some higher tariffs. They ended up about 10% more," Salmonsen said.  "Other countries don't have a big history of retaliating. Even though they get higher tariffs, they don't usually put higher tariffs on what they get from us but, then again, they may look to purchase elsewhere if they can find it.”

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