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China-tariffs plan could hurt American farmers
Soybean farmers in the U.S. say they rethink their strategy for the future after the Chinese government announced retaliatory tariffs targeted to your harvest. The move was in response to President Trump’s plan, the duties on Chinese goods for the” unfair-trade-practices.
CANTON, Miss. – Hundreds of thousands of U.S. soybean farmers to rethink strategy, because there is a growing fear that a possible trade would cripple the war with China in the industry.
The Trump administration announced $ 50 billion in duties on Chinese goods for the “unfair trade practices”, the intellectual property and the American technology, and China responded with its own trade-threat – to – $50 billion in duties on U.S. goods, including soy beans.
Soybean farmers say they are already feeling the pinch. The back-and-forth has caused significant price declines for soybeans this year, only a few months before the harvest season.
“I support the President’s action. The first rates, which the President asked us to, and are proportionate and forced technology transfer and theft of intellectual property by the Chinese,” US Trade Representative Robert Lighthizer, said in a statement. “It is very unfortunate that instead of the elimination of these unfair trading practices by China, said that he intends to impose to unfair tariffs, targeting U.S. workers, farmers, ranchers, and businesses made. At the president’s direction, USTR is the preparation of the proposed tariffs to offset China’s action.”
President Trump once said, the massive trade deficit with China is a reason for his hard strategy. But the moves could have a big impact on the $ 14 billion industry.
Soy beans grow in a Miss in a field in Canton,. According to the American Soybean Association, about 1 in 3 rows of soybeans are exported to the United States and sold to China.
China imports 60 percent of U.S. soybean exports in the year 2017, according to the American Soybean Association (ASA). The ASA represents approximately 300,000 soybean farmers, introduced a $6 billion price-drop for the 2018 harvest, harvested, later this year.
People like Danny Murphy, who is a farmer for his entire adult life in Mississippi, said the trade feud hurts his bottom line.
“If [the current price] was applied to my crop, and it remains in force, by crop [it] would probably be $150,000 for me,” Murphy told Fox News. “I’m approaching retirement age and do not take a US $150,000 from a pension plan that you have available…Yes, there is a significant is true.”
More than 300,000 soybean farmers would be affected in 30 States, from the price fluctuations of soybeans as a result of the ongoing trade tensions with China.
Like most farmers, Murphy said, is it to late to switch to a different harvest, as he also in the growing season. He usually sold about $750,000 worth of product and account for the cost of the execution of its transactions. About half of its 1,500-acre farm devoted to soybeans and the other half is used to grow corn.
Brandon Wipf, South Dakota soybean farmer and a member of the ASA Board of Directors, said that many breeders around the country to come up with a new strategy if things get worse.
To escalate, “sure, if this trade-war, they are said to go to some big-time switch in the strategy [on] the part of the farmers in the whole of America, in the next year and the next year,” Wipf. “If all of the switches on the corn planted is for example, what do you think, the price of corn to do? It goes to the tank.”
For almost 40 years, the American soybean farmers have worked to corner the Chinese market for your product. The country imports most of the raw materials soy beans, which is about $ 14 billion for the US economy.
Economists say President Trump may have to rethink its trade policy, because it will majorly influence the farm-belt, which tends to be solid Republicans.
“We need to protect our farmers do not unnecessarily starting a trade war, which is too aggressive for a policy that will cause a setback for our farmers,” said Michael Szanto, an economist from the University of Miami. “Well, Yes, it is possible that both sides on this and this is not to say that the United States should not have to do anything, [but] in General, as an economist, I am very suspicious of the duties interfere with free trade.”
Szanto pointed out that the Chinese have targeted the States that voted for President Trump in the election of 2016.
The duties on Chinese goods are set to go into force on the 6. July.
Fox News’ Allie Raffa contributed to this report.
Willie James Inman, is a Fox-News-multimedia reporter based in Jackson, Mississippi. Follow him on twitter: @Willi James