Trade talks in Washington, D.C. last week ended on a somber note.
American and Chinese officials were unable to reach an agreement.
United States farmers and ranchers are feeling the pinch.
American and Chinese officials hoped to reach an agreement last week in Washington, D.C. However, talks quickly crumbled, as President Trump increased tariffs on Chinese goods.
Greg McBride, commodities broker with Allendale, Inc., shares where the countries now sit.
“The deal has not completely broke down, but it feels like we’re going in that direction,” McBride said. “The President has implemented the tariffs he talked about and China hit us back, for $60 billion in tariffs on other U.S. goods. What we’re looking at is the tit-for-tat mentality we saw last May.”
The United States Department of Agriculture is working to develop a trade relief plan, according to U.S. Agriculture Secretary Sonny Perdue. McBride gives insight into the proposed plan.
“What President Trump’s idea sounds like is to go ahead and use the money we bring in from Chinese tariffs and use it to purchase U.S. agricultural goods,” McBride said. “As long as it leaves our shores and gets used, I’ll think we’ll be happy with that.”
However, McBride does not believe this is a long-term fix.
“The problem is like everything else we’ve seen: It’s a BandAid right now,” McBride said. “We need Chinese trade. They’re one of our biggest trade partners, especially when it comes to soybeans. But the amount they could do with pork, or beef, if they alleviated some of those regulations. Those give us all kinds of opportunities, as far as expanding agriculture here.”