Trump's trade war with China worries Minnesota's soybean farmers
With planting season just around the corner, Minnesota soybean farmers are voicing concern over President Trump's trade war with China.
China has said it will match the 34% tax on all U.S. imports.
And just this morning, Mr. Trump responded by threatening new 50% tariffs on China, a country that imports a lot of Minnesota soybeans. That's not the only reason farmers are on edge.
"The buzzword is 'uncertainty' and that carries across our industry right now," said Darin Johnson.
A fourth-generation soybean farmer, Johnson is also president of the Minnesota Soybean Growers Association. He said to put in perspective the trade war with China, all you have to do is look at the numbers.
"Almost 50% of U.S. soybeans are exported. It's Minnesota's number one export," said Johnson.
Which is why Johnson and other farmers are pushing for the Trump administration to quickly reach deals with China and other countries. Their fear is that trade partners who they've worked with for decades could turn to Brazil or Argentina for their soybeans if the tariffs linger.
"It's just imperative that we keep these trade agreements intact. Understandably, there is some work to get done and we get that. But we have to make sure we get it done in a timely fashion," said Johnson.
The Trump administration has said that its strategy of using tariffs as a tool is working. They say more than 50 countries have reached out for tariff talks and to negotiate.
But that sentiment isn't shared by Gary Wertish, president of the Minnesota Farmers Union.
"It's destroying our trust as a reliable trading partner around the world," said Wertish.
At a weekend press conference with Sen. Amy Klobuchar, Wertish said it's not just China, but tariffs on Mexico and Canada that have him worried.
"Unfortunately, the ones that are going to lose are the small beginning farmers that don't have the equity. They'll be the first ones that don't have a choice. A lot of them will be out of business. It's very frustrating," said Wertish.
At the same press conference, Klobuchar also talked about bipartisan bills she's working on to try and reverse the tariffs.
China has said its 34% tariffs on all U.S. imports will begin on Thursday.
