From American Farm Bureau Federation (AFBF)
The following statement on the Chinese tariff announcement may be attributed to American Farm Bureau Federation President Zippy Duvall:
“Farmers and ranchers are, by necessity, patient and optimistic. We know markets ebb and flow. But China’s threatened retaliation against last night’s U.S. tariff proposal is testing both the patience and optimism of families who are facing the worst agricultural economy in 16 years. This has to stop.
“Growing trade disputes have placed farmers and ranchers in a precarious position. We have bills to pay and debts we must settle, and cannot afford to lose any market, much less one as important as China’s. We urge the United States and China to return to negotiations and produce an agreement that serves the interests of the world’s two largest economies.”
From National Cotton Council (NCC)
The National Cotton Council is concerned that China’s announcement of significantly higher proposed tariffs on U.S. raw cotton shipped to that country would significantly harm the economic health of the U.S. cotton industry.
For the current 2017 crop year, China stands as the second largest export market with purchases of approximately 2.5 million bales of U.S. cotton.
“I cannot overstate the importance of China’s market to U.S. cotton farmers and the importance of U.S. cotton in meeting the needs of China’s textile industry,” NCC Chairman Ron Craft said. “The cotton industries of the United States and China enjoy a healthy, mutually beneficial relationship.”
According to the USDA Foreign Agriculture Service GAIN Report, cotton has been listed among multiple U.S. agricultural products that could potentially be hit with higher tariffs from China — specifically an in-quota tariff that would increase from one percent to 26 percent. Following the announcement, the cotton market reacted accordingly – almost limit down on nearby contracts.
The GAIN Report noted that China’s proposal of retaliatory tariffs on selected U.S. agricultural products is in response to the recent U.S. proposed tariffs on Chinese imports resulting from the Section 301 investigation into the forced transfer of U.S. technology and intellectual property.
Craft said the NCC strongly encourages the two governments to engage in immediate discussions “that can resolve trade tensions and preserve this long-term collaborative relationship. The U.S. cotton industry stands ready to assist the U.S. government and our trading partners in China to find a resolution to this damaging trade dispute.”
From National Farmers Union
In the latest of a series of tariff threats between the United States and China, the Chinese Ministry of Commerce (MOC) announced plans to impose a 25 percent tariff on $50 billion worth of U.S. goods, including soybeans, corn, beef, and other agricultural products.
National Farmers Union (NFU), a family farmer-led organization who supports aggressive efforts to fight unfair trade practices, is urging the Trump Administration to work with Congress to develop a Farm Bill that protects family farmers from harm as a result of retaliatory tariffs. NFU President Roger Johnson issued the following statement in response to the announcement:
“These tit-for-tat tariff threats were expected from the moment the administration first engaged China. The President and his administration continue to claim there won’t be a ‘trade war,’ and that agriculture won’t feel the brunt of retaliation, but the daily news announcements indicate otherwise.
“As trade tensions escalate, Farmers Union is increasingly concerned that there is not a plan in place to protect our family farmers and ranchers who are always the first to bear the brunt of retaliatory tariffs. Farmers are dealing with severely depressed farm prices and a 12-year low in farm income, and a trade war will undoubtedly make these conditions worse.
“We urge the President and the administration to immediately engage with the Senate and House Agriculture Committees to develop a Farm Bill that will protect farmers and ranchers from the collateral damage that we are seeing as a result of these actions.”