Trump's trade policies could cause a recession
Ian Sheldon, the Andersons Chair in Agricultural Marketing, Trade and Policy in the Department of Agricultural, Environmental, and Development Economics (AEDE), said if Trump were to implement a 45% tariff against China and a 35% tariff against Mexico, “He’s going to put the economy into a recession, if the Chinese and Mexicans retaliate, as I expect them to do.”
China is expected to import nearly 3.2 billion bushels of soybeans during this marketing year (2016-2017), according to the U.S. Department of Agriculture, accounting for about two-thirds of the world’s imports. Some 59% of U.S. shipments go to China, so American soybean growers would be hit hard in a trade war.
The U.S. imports about $4.8 billion worth of vegetables and $4.3 billion worth of fresh fruits from Mexico. Losing those imports would hurt U.S. consumers, especially lower-income consumers, as fruit and vegetable prices would rise with a trade war, Sheldon said.
source: ocj.com
