BUSINESS
Looming U.S.-China trade war
March 23, 2018 - U.S. President Trump is imposing 25 percent tariffs on up to $60 billion worth of Chinese goods while China unveiled taxes on $3 billion of U.S. imports in response to steel and aluminium duties announced earlier on March 8.
The United States shipped $138.5 billion worth of agricultural products around the world in 2017, including $19.6 billion (14 percent) to China.
Now, one of America’s most prominent farming industries fears it could find itself a target of Chinese retaliation. Exports of soybeans totalled $13.9 billion in 2017, according to the U.S. Department of Agriculture.
The idea of targeting soybeans would be to inflict economic pain in states where Trump’s base lies, according to Randal Phillips of the Mintz Group, a firm that helps companies identify risk. Eight of the most prominent exporting states voted for Trump in 2016. A ninth, Minnesota, voted narrowly for Hillary Clinton.
China and Hong Kong combined is also the second-biggest market for U.S. pork, according to the U.S. Meat Export Federation. On Friday, China’s Ministry of Commerce announced plans for a 25 percent tax on U.S. pork imports.
Other businesses with significant sales in China that Beijing could target include Apple, Boeing and General Motors.