It almost seems like we write a new article every day about the impending global trade war, as new developments are happening regularly. We cover this extensively as it’s our goal to help all Americans achieve their dream of living their life financially free.
This trade war will impact all of us, from the big streets in New York to the small farming communities who live and die on the agriculture they produce.
Since before he was elected into office, President Trump has made it one of his main goals to protect American workers, revive near-dead industries, and right the wrongs of the trade deficits we have with countries all over the world.
It sounds like a good idea until these countries decide to rebel and retaliate with tariffs of their own. They’re not happy with the president over this issue and threaten to fight back in their own way. This will translate to misery here in the States.
One of the products China says they will tariff are soybeans, which are grown in abundance in Iowa and other Midwest states, but the Chinese tariffs could become an economic disaster for farmers.
Chad Hart, and economist at Iowa State University, has calculated the farmers in his state will lose as much as $620 million this year alone if China tariffs their crop.
“Any tariff or tax put in place will have a significant impact, not only to the U.S. soybean market, but to Iowa’s because we’re such a large producer. It will slow down the market,” he said.
Soybeans are the most widely planted crop in the U.S., so any tariff placed on it would be disastrous for our agriculture. It might not just be a temporary setback either. Senator Chuck Grassley, a republican from Iowa, believes this could lead to a permanent loss for this area.
“It could be devastating for local communities across the Midwest. It’s also important to remember that when trade barriers go up, alternative sources of goods are found, and new trading relationships develop. A temporary setback could quickly develop into a permanent loss,” he said in an interview.
This can be a nightmare scenario for the Midwest. China imports nearly 61% of the U.S. soybean crop, so this type of loss would be devastating.
Soybeans aren’t the only victim, as other commodities like aluminum, lead, cotton, oil, and gold have been losing their value as Mexico, Canada, U.K., India, and the EU have also threatened to retaliate with tariffs.
The U.S. may be the largest economy in the world…and it’s not even close…but the question remains how big of an impact this would make on U.S. consumers as price hikes will assuredly be passed down to them.