Apr 12, 2018
Soy growers again expressed grave concern over the Trump Administration’s use of tariffs to address China’s unfair trade practices.
The American Soybean Association (ASA) and several other supply chain stakeholders sent a letter to the House Ways & Means Committee, urging Congress to develop a strategic plan to address problems with China and ensure U.S. families are not paying the price.
“China’s threat of retaliation further exacerbates uncertainty as farmers and manufacturers rely on the ability to export their crops and products to China for their livelihood, yet they are targeted for potential retaliation,” the letter states. “China’s potential retaliatory measures would likely have broad, cross-industry impact aimed at constraining current U.S. operations in country and impeding any new market entrants. With no clear strategy to aid those businesses, farms and workers impacted by the new tariffs, their livelihoods are at risk.”
The groups also pointed out the Administration’s approach does not adequately account for the role of the global supply chain in product production and assembly, which can take years to establish.
“The concerns also apply to U.S. farmers and exporters who may be subject to China’s proposed retaliation tariffs,” the letter states. “These businesses and farmers cannot easily find new buyers for their products. Once a market is lost, and a buyer shifts to a foreign competitor, even if only for a short period of time, future U.S. exports and sales likely will be lost as well.”
The group underscored that subsidies are not a long-term solution and the loss of the Chinese market would be exponential.
Click here to read the letter.