And lesson for dummies red
Were China to want to match Trump’s latest threat, it wouldn’t have enough American goods imports to target. It could take other measures like curbing package tours or student transfers to the U.S., or hamper American companies operating in China.
“This is starting to feel like the beginnings of a trade war, if simply each proposal is matched with a retaliation,” said Patrick Bennett, a Hong Kong-based strategist at Canadian Imperial Bank of Commerce. “The U.S. risks isolating itself from global trade in this process and we think the U.S., USD and U.S. asset markets have more to lose.”
we would win a trade war and china would lose. previous presidents have allowed china to win and help put this country in huge debt to china, Trump is trying to reverse that.
We don't need Chinese products to survive, but they need American food to survive. We have all the leverage here to stop the unfair advantage they have had for far too long.
how do you win a trade war, trump loon? and how do you think you're better able to gauge the effects of a trade war than actual smart people who are trained in economics.
hint: you can't.
OK, jelly. does china sell more to America or does America sell more to china? Hint: the country selling the most has the most to lose in a trade war.
The education of redfish
Why China’s soybean tariffs matter
April 5, 2018 6.46am EDT
A farmer harvest his soybean field in Loami, Ill. AP Photo/Seth Perlman
Aut
China’s
plan to levy a 25 percent tariff on imports of U.S. soybeans may come as something of a surprise to most Americans. But to a
professor of agricultural economics who studies international commodity markets for a living, this was not at all unexpected.
Even before the conclusion of the 2016 presidential race,
trade analysts were already weighing the possibility that China might impose an embargo on U.S. soybean imports based on protectionist rhetoric from both candidates.
And now that risk of a trade war is reality, and American soybean farmers may be among the biggest losers.
Soybeans are a crucial part of the global food chain, particularly as a source of protein in the production of hogs and poultry.
In 2016, the
U.S. accounted for US$22.8 billion worth of global soybean exports, the most of any country. Its nearest competitor is Brazil, which exported $21 billion.
Meanwhile, China accounts for the lion’s share of global soybean imports at $34 billion, or two-thirds of the total.
American exports made up about a third of that, or $12.4 billion, making soybeans the United States’ second-most valuable export to China after varieties of airplanes.
The
importance of China as a market for soybeans has been driven by an explosion in demand for meat as consumers switch from a diet dominated by rice to one where pork, poultry and beef play an important part. Chinese production of meat from those three animals
surged 250 percent from 1986 to 2012 and is projected to increase another 30 percent by the end of the current decade. However, China is unable to produce enough animal feed itself, hence the need to import soybeans from the United States and Brazil.
That’s why the tariffs
have tremendous potential to hurt farmers here in Ohio, where soybeans are the number one agricultural export at $1.4 billion. China is the state’s largest export market.
And Ohio is just the sixth-largest exporter of soybeans, after Illinois, Iowa, Minnesota, Indiana and Nebraska, all of which will suffer from the tariffs.
Not only do farmers stand to lose out by giving up market share to Brazilian farmers, but soybean prices will probably fall as well, hurting incomes and creating a double whammy for Midwest farms.