President Donald Trump's recent tariffs are projected to elevate prices across various sectors, including agriculture. Economists foresee increased costs for products like fruits, vegetables, and building materials. The agricultural sector faces particular challenges.
In a CNBC article, Lori Ann LaRocco highlights the concerns of U.S. farmers. "In the U.S. farming sector," LaRocco explains, "the damage has already been done, and the economic crisis already begun. U.S. agriculture exporters say the global backlash to President Trump's tariffs is punishing them, especially a decline in Chinese buying of U.S. farm products, leading to cancelled export orders and layoffs."
Agriculture Transportation Coalition (AgTC) Executive Director Peter Friedmann stated, "It is a full-blown crisis already." LaRocco reports that AgTC members are experiencing "massive" financial losses due to the trade conflict. A wood pulp and paperboard exporter reported the cancellation or hold of 6400 metric tons in storage and 15 railcars in demurrage.
LaRocco further notes, "Meanwhile, the exporter said there are 9000 metric tons on the water to China expected to arrive on May 13 and facing the threat of costly diversion to Chinese bonded warehouses or other countries as Chinese buyers may refuse the cargo and abandon it at port."
A grass seed exporter informed AgTC of the cancellation of eight loads by Chinese customers, despite existing vessel bookings. LaRocco observes, "Agricultural exporters are warning that there are no additional markets to quickly replace China's demand and absorb the volume," impacting prices.
Source: AlterNet