As part of the 2018 trade war with China, President Donald Trump imposed tariffs on a number of US goods for Chinese buyers. CNN reports that four years after the move, which is still in place despite a change of administration, American soybean producers are feeling the negative impact (Lobosco). The main effect of this decision was retaliatory tariffs on US agricultural imports to China, which led to a decrease in the export of soybeans. Although, in May 2022, President Joe Biden took steps to discuss the removal of tariffs, there are still no clear decisions on this issue. After the introduction of tariffs on soybean exports to China, there has been a significant reduction in the sales of this agricultural product, which negatively affects the situation of American farmers. Many Chinese buyers have chosen to purchase soybeans in other markets, which has also led to a 17% reduction in US share in the sector since the start of the trade war (Lobosco). The article notes that farmers and experts are concerned about Joe Biden’s inaction on the need to eliminate existing tariffs. However, it is also noted that US soybean producers are also experiencing difficulties due to rising production costs, in particular the increase in prices for herbicides.
I chose this event for consideration because it has an extremely long history compared to other contemporary political events, as well as evident long-term effects. Trump’s imposition of tariffs and Biden’s current inaction on lifting them could have a significant impact on the country’s agricultural economy. In particular, against the backdrop of rising prices for production and a reduction in imports, farmers will be forced to reduce production volumes, which can lead to negative economic consequences. This is significant since this event may affect the economic imbalance in other areas of the economy, which is already affecting the entire US. Additionally, Biden’s current tariff policy could have a negative effect on public attitudes towards him, which will also affect the political environment. Finally, it is important that the continuation of the trade war with China will make it much more difficult to develop economic relations with such a major manufacturing and trading power as China.
I chose this topic because I was surprised at how long-term the impact of tariffs on US exports to China has been. I learned that President Biden is currently discussing the removal of these tariffs, but with the terms of restoring the volume of exports of American products to China. In this regard, I believe that the expansion of the domestic soybean market, which was the result of this policy, is rather a positive aspect. In my opinion, the US needs to minimize its economic dependence on China, which is exactly the purpose of the tariffs. I am interested in exploring this topic further, as I’m wondering if tariffs will be canceled or tightened. Additionally, I want to know what economic consequences these actions will have on the country’s economy.
Work Cited
Lobosco, Katie. “Trump’s trade war looms over soybean farmers 4 years later.”CNN, 2022.