In the Business section of the Sunday Journal Star of October 6, there were two excellent articles about the impact of Donald Trump’s tariffs on the US agricultural sector: “Trade war could hit US agriculture hard†and “Trump’s taste for tariffs.†With agriculture being such an important part of Nebraska’s economy, it is critical that we understand the effect Trump’s tariffs will have not just on Nebraska’s economy, but the entire U.S. economy. Following are a few highlights:
1) Tariffs are a tax on imports and that tax is paid by importers (American companies) and those costs are passed on to consumers (you and me). 2) When tariffs are placed on imports from other countries, those countries will likely retaliate with their own tariffs, making American exports more expensive. This could cost the U.S. billions in lost agriculture exports. It is estimated soybean exports could drop by $15 billion ($1.15 billion in Nebraska), Nebraska beef exports $400 million and corn exports by $550 million. 3) Due to these large losses in farm income, “a new support program would require massive funding to cover the lost export revenue that could reach tens of billions annually.†4) No one wins in a trade war.
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While the current administration has kept some of Trump’s earlier tariffs, a second Trump administration will devastate farm income and increase prices for all U.S. consumers. I urge you to read these articles as part of your research before you vote.
Bob Servedio, Lincoln