Are the US and China playing it safe?

Yesterday, FreshPlaza published an article that included comments from the CEO of AP Moller-Maersk on the US trade war with China. Soren Skou mentioned that President Trump’s trade war will harm the US more than any other country. It resulted in comments from FreshPlaza’s readers and two of them are sharing their views in this article. 

“I agree that the tariffs make the US less competitive,” says Rick Chong with Sutherland, S.A. “Many other countries have improved their quality standards in recent years and are able to produce agricultural products against lower production costs. In addition, commodity prices of Chinese products have hit their ceiling in the past three years. The Chinese consumer has set a limit on what they are willing to pay for imported produce.”

Another reader looks at it from a broader perspective than just agribusiness. “Our agricultural exports to China are minuscule compared to the industrial goods we import from China,” says Andres Thomas with South Texas Banana Consulting. “The US trade imbalance with China is very high and China largely depends on the US for its exports. The Chinese know they have a lot to lose and by imposing tariffs on agricultural products instead of industrial goods, they are playing it safe,” he said.

“China is not going after anything big. They don’t want to rock the boat. In fact, I feel both countries are playing it smart and safe. Economically, it makes sense what they are doing, and the overall ending will benefit the US,” shared Thomas.

Chong adds that Chinese consumers feel safer consuming produce from the US. “This is a benefit to the US and an important factor, given the food scares that are reported in Chinese social media and news.”

For more information:

Rick Chong

Tel: (+1) 403 616 1977

Andres Thomas