A new round of import taxes between the U.S. and China
has Indiana’s agriculture and manufacturing industries — and even some
of President Donald Trump’s fellow Republicans — worried about the
escalating trade war’s impact on Hoosier farmers, companies and
consumers.
Trump last week raised tariffs from 10 percent to
25 percent on many goods and commodities imported from China, worth
about $200 billion. The Chinese government responded this week by
announcing additional taxes on U.S. imports worth about $60 billion, to
take effect June 1.
The Chinese tariffs are a threat to farmers, who
have already seen exports decline after China imposed taxes as high as
25 percent on crops such as soybeans — Indiana’s top international
export. With the tariffs in place, China has sought commodities
elsewhere, leaving U.S. farmers without a big market and leading to a
steep drop in prices.
“China is one of our huge buyers of soybeans, and
we produce a lot in Indiana,” said Robert Kelly, the Purdue Extension
director in Elkhart County. “If China continues to put tariffs on our
agricultural products, they can go to another country and buy it for
cheaper. That makes our supply higher, which makes it less valuable.”
Soybean prices this week dropped to $7.55 a bushel, a 10-year-low, after the trade war heated up again.
If prices keep dropping, it could put farmers in a
hole because their costs of doing business — from buying seed and
fertilizer to renting land — tend to remain static or increase, even as
they get less income, Kelly said.
One St. Joseph County farmer, Larry Enders, said
he saw corn prices drop from about $3.77 per bushel last week to $3.28
after the talk of tariffs, though the price had since rebounded to
$3.55. He was glad the president was going after China, despite the
effects on farmers.