July 2,2018-
You would think the July 4th week ought to be a celebratory time for America’s and California’s farmers when much of the harvest bounty comes to the table.
Maybe not so much this year as the list grows to $50 billion worth of farm goods including our grains, fruit, nuts and milk products that face escalating trade tariffs imposed by our largest world customers.
The battle is joined as half dozen countries retaliate against President Trump’s policy imposing steel tariffs on them.
Already the European Union has responded with $3.4 billion worth of duties as have both Turkey and India.
Canada started this week slapping on duties on a list of ag goods including orange juice and beef products.
Coming Thursday Mexico imposes its next round of escalating targets, $3 billion worth of our products including cheese, pork, apples, sausages, frozen potatoes, frozen cranberries, orange juice and whiskey. Some of these duties are are added to what is already in place.
This past weekend Mexico voters went to the polls and elected Andrés Manuel López Obrador, author of Oye, Trump (Listen Up, Trump) that knocks Trump’s plan to build a border wall and criticizes Trumps treatment of migrants. Probably in no mood to settle with Trump over higher duties or what may be the end of the NAFTA trade pact.
Then on Friday China will be imposing a 25 percent duty on about $34 billion worth of US goods that includes our milk products, nuts, soybeans and oranges. That will raise citrus going to China to the 50% tariff level, making our oranges even more expensive for Chinese consumers and opening the door to our competitors.
This week the US Chamber made its position on the trade dispute clear.
“China, the EU, Mexico and Canada have already retaliated or announced plans to retaliate with billions of dollars in tariffs on American-made products.
Tariffs imposed by the United States are nothing more than a tax increase on American consumers and businesses–including manufacturers, farmers, and technology companies–who will all pay more for commonly used products and materials.
Retaliatory tariffs imposed by other countries on U.S. exports will make American-made goods more expensive, resulting in lost sales and ultimately lost jobs here at home.
This is the wrong approach, and it threatens to derail our nation’s recent economic resurgence.”