U.S. Farmers Seek Trade Support from Trump

By Tom Polansek
CHICAGO (Reuters) – U.S. farmers are looking for support from President-elect Donald Trump for increased access to China, the top soy-importer, despite his trade policies suggesting otherwise.

Trump's Republican party secured significant backing from the U.S. farm belt, winning most states in the recent election, even as the agricultural sector suffered during the U.S.-China trade war. Following Trump’s tariffs on various Chinese goods, China retaliated with tariffs on American agricultural imports, leading to a severe decline in U.S. soy exports.

Farmers, alongside potential agriculture secretary contenders, express a desire for exports to be prioritized and trade deals to revitalize their sector. Indiana farmer Kip Tom stresses the importance of promoting U.S. products globally.

However, Trump is threatening new tariffs on Chinese goods, likely prompting further retaliation from China, which would worsen U.S. farmers' access to that market. Trump's agenda includes a proposed 60% tariff on Chinese imports and a 10% tariff on other imports in his second term.

Grain industry consultant Jay O'Neil warns that the Republican election win may not bode well for agriculture. With U.S. corn and soy prices hitting lows and projected agricultural trade deficits looming, farmers worry about the economic impact.

U.S. soybean exports to China dropped significantly from previous years, indicating increased competition from countries like Brazil. Despite concerns, some farmers believe any new trade disputes with China may be shorter and less damaging than the previous trade war.

A past strategy during Trump's first administration involved providing generous subsidies to offset loss in sales. Nonetheless, another trade conflict could result in significant costs for U.S. agriculture. As Brazil has overtaken the U.S. as China's top corn supplier, farmers see an urgent need to reclaim their market position.

While a trade war could impose short-term challenges, some believe it might ultimately bolster U.S. production and jobs.