President Donald Trump’s steep new tariffs, according to economists, will cause a variety of products to soar in price — from fruits and vegetables to vacuum cleaners to building materials. Agricultural products are another concern.
CNBC’s Lori Ann LaRocco describes the worries of farmers in an article published on April 28.
“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.”
READ MORE: ‘Was it?’ Republican CNN analyst rendered speechless when challenged on Trump spending
Agriculture Transportation Coalition (AgTC) Executive Director Peter Friedmann told CNBC, “It is a full-blown crisis already.”
“AgTC says ‘massive’ financial losses are already being shared by its members as a result of the trade war, based on reports it is receiving from member companies,” LaRocco reports. “A wood pulp and paperboard exporter reported to the trade group the immediate cancellation or hold of 6400 metric tons in a warehouse and a hold of 15 railcars sitting in what is known in the supply chain as ‘demurrage,’ when fees are charged for delayed movement of goods.
LaRocco adds, “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 to other countries as Chinese buyers may refuse the cargo and abandon it at port.”
According to LaRocco, a grass seed exporter “told AgTC it received two weeks notice that eight loads were being canceled by Chinese customers despite vessels bookings already being in place.”
READ MORE: These ‘performative’ GOP ‘temper tantrums’ are ’embarrassing’ — but not to the ‘MAGA base’
“Agricultural exporters are warning that there are not additional markets to quickly replace China’s demand and absorb the volume,” LaRocco notes, “and that is already impacting prices.”
READ MORE: Meet Ed Martin: The Missouri lawyer weaponizing the DOJ for Trump
Read CNBC’s full article at this link.
