Farmers in the United States are suffering the fallout of the trade war with China. After Trump imposed a 10% tariff on $300 billion in goods that are made in China, the Chinese government placed a ban on all agricultural goods that are imported from the United States. Now, farmers in the United States are suffering huge loses.
Farmers Suffer Heavy Loss Thanks To Trade War
This week, farmers in the United States lost one of their biggest clients. As if the floods and heatwaves aren’t bad enough, farmers in the United States now have to find new clients to replace the supply chains they lost in China. They’ve been forced to reduce prices significantly but will still record losses in profits even if they can see new clients.
One of the major farmers from North Dakota, Bob Kuylen, said that things are getting worse every day and Trump is ruining the market for farmers. This is the case as China is the second-largest importer of American agricultural products. In 2017, China imported products worth $19.5 billion from the United States. This figure dropped to $9.2 billion in the wake of the trade war last year. This year, it is expected to fall by another 20%.
Meanwhile, the United States is also feeling the heat as income from farming has fallen by more than 45% since 2013. Of all the agricultural products that will be affected by this ban, grain would be affected the most as China buys 60% of all soybean exports from the United States yearly. Since the beginning of the trade war, these prices have fallen by 9% while the import of soybeans from the United States to China fell by 75% between September 2018 and May 2019.
With the trade war escalating daily, there is no way to determine how bad things are going to get for farmers by the end of the year.