Chinese tariffs could impact NJ soybean crop

Soybeans

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However, China is unable to produce enough animal feed itself, hence the need to import soybeans from the United States and Brazil.

Soybean producers are hoping that's what will happen. But farming soybeans is still how he makes a living.

David Hardin is a third generation farmer in rural Hendricks County.

The four large, rectangular buildings he's pointing to house hogs, which Hardin primarily sells in the Midwest. "And they can go elsewhere for their wheat".

The USTR list of tariffs - an additional tax on imports - excluded several consumer-focused products, such as cellphones and laptops assembled in China, but would affect Chinese-manufactured flat-panel televisions and light-emitting diodes (LEDs), should it come into force. China is the largest consumer of US soybeans, buying about one-third of all USA soybean production each year, the group says.

Farmers are used to coping with the unknown - much of their job depends on factors outside of their control, like the weather. "That could be the difference in making money and losing money", said Williams.

USA authorities say Beijing denies foreign companies the right to block use of technology by a Chinese entity once a licensing period ends and imposes contract terms that are less favorable than for local technology.

The president tweeted Wednesday morning that we are not in a trade war, then said when the U.S.is $500 billion in debt to China, you can't lose a trade war.

The price and volume of Canadian exports to China may increase a bit, but the price could fall in the domestic market and other markets, Davidson says. "I think most farmers understand that, they just don't want to be the only ones sacrificing in that arena".

And, they aren't the only ones who could see losses because of tariffs.

China retaliated Wednesday against USA plans to apply tariffs on 106 imports by issuing a US$50-billion list of USA goods including soybeans, whisky, beef, industrial chemicals and small aircraft for possible tariff hikes in the escalating dispute.

The start date for the tariffs has not been announced, the Chinese government said the tariffs are created to target up to $50 billion of USA products a year.

Johnson, who farms along with his father and uncle, says if the China tariffs take effect, they will hurt farmers.

A report released Tuesday by the USTR also cited complaints Beijing uses cyber spying to steal foreign business secrets, but it was unclear whether the latest tariff hike was in response to that.

It was about a month ago he said trade wars are quote "good and easy". With China closed for 13 years, beef producers started from ground zero, Domer said.

"Indiana produces steel, IN produces aluminum", he says.

"We're discussing that right now, but I'm not at liberty to talk about those kinds of things from a mitigation perspective", he said. A little over half of the USA soybean crop is exported annually. He says that he will plant more of another group later this spring if the soybean market looks to be in jeopardy.

American soybean farmers are anxious about their best customer. "We've not been doing extremely well for the last four years", Scott said in an interview. "So, that doesn't bare well".

He says with profit margins already thin for farmers, this could raise the prices for customers.

As an established farmer, closer to retirement Haan's equipment is mostly paid for. "Any new tractors obviously have steel as a component".

The industry has since urged President Trump to capitulate in the trade war before any real and lasting damage is done.

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