THREAD: Hi folks, @realdonaldtrump’s tweet about soybeans today got me thinking about how much misinformation is out there about many of his recent tariffs.
Let’s take a look at the facts, shall we? Join me for #Trade101.
Let’s take a look at the facts, shall we? Join me for #Trade101.
Tariffs = a tax on a particular class of imports or exports. Commodity = a mass-produced unspecialized product — this is important because it means it can be produced ANYWHERE.
The President imposed a 25% tariff (remember - a tax) on a laundry list of Chinese products bought by Americans. China responded by doing the same to many US goods bought in China, including—you guessed it—soybeans.
China is the largest importer of US farm products. Soybeans top that list. In Alabama, soybean exports to China are about $169 million annually according to the @USChamber and contribute to about 11k jobs.
Right now, it’s more convenient for China to import US soybeans because we have quality, reliable producers. But tariffs change the game. As they've done before, China can tap markets in competing countries like Brazil, who would be happy to take that market from us—and keep it.
You know what that means? US farmers lose their #1 importer, possibly for good. Negotiations won’t matter. Being tough won’t matter.
In short: these tariffs are an existential threat to American farmers. Who actually thinks that’s a good idea?
In short: these tariffs are an existential threat to American farmers. Who actually thinks that’s a good idea?
