Cargill remains concerned that the U.S. and China trade discussions will escalate into a trade war.
In Comments sent to U.S. Trade Representative Robert Lighthizer, Cargill officials say the tariffs proposal by the U.S. targeting China will “not effectively advance the goal of addressing distortive trade practices,” according to Reuters.
Cargill sent a five-page letter to Lighthizer as the USTR is taking comments and hearing testimony this week on the proposed tariffs. For Cargill and other grain trade organizations, the growing trade disputes are disrupting agricultural supply chains. A Cargill official writes in the letter that U.S. farmers will be hurt the most by declining prices linked to China retaliatory efforts, including a 25 percent tariff on U.S. soybeans. Cargill states: “the use of tariffs is unsuccessful in achieving lasting solutions.”
The hearings this week come as officials from China and the U.S. are holding meetings in Washington, D.C. to discuss trade.
From the National Association of Farm Broadcasting News Service.