After China revealed a severe retaliatory tariff about US exports on Wednesday, Treasury Secretary Scott Besent issued a fairly surprising response: “What about that?”
The question stressed the argument of the Trump administration that America has the upper hand in a commercial war with China, given the extent to which its economy depends on exports to the United States.
The United States buys more goods from China than China that it buys from the United States. But Beijing’s decision to take revenge on President Trump’s tariff by raising the fees on American imports to 84 percent can calm more than Mr. Pesint.
“The American companies that were selling to China, and were very successful in doing this, will not be able to do so because of the Chinese revenge,” Sean Stein, Chairman of the Business Council in the United States of China, said in the hours before Mr. Trump prepared his definitions again.
He said: “The customs tariff on the Chinese and side by the American side covers everything,” which means that everything from flying to medical photography to agriculture will be affected and “trade will slow down.”
The United States exported $ 143.5 billion of goods to China last year and imported $ 438.9 billion from this country, According to the office of the representative of trade in the United States.
The loss of China as a export market will deal with a very difficult economic blow to agricultural workers in many red countries, and multiplied by many voters who helped Mr. Trump win the presidential elections. On Wednesday, Mr. Trump corrected the US tariff on China higher when he began to stop in the “mutual” tariff he imposed on other countries. The Revryive provides little relief for farmers who are concerned that the long trade war with China will cut ties with the largest export market.
The first trade war with China, which lasted from 2018 to 2019, resulted in billions of dollars in the missing revenue for American farmers. To help compensate the losses, Mr. Trump delivered 23 billion dollars In subsidies From the fund established by the Ministry of Agriculture To stabilize the farm sector. Large agricultural operations and farmers in the south Take advantage moreProviding concerns about fairness and Leave some farmers feel cheating.
Soybean industry is one of the most anxious sectors about the current definition revenge. China is the largest market for export of soybeans in America, but when Mr. Trump imposed a tariff on Chinese goods during his first term, Beijing took revenge on the purchase of soybeans from other countries, including Brazil.
“If this continues in the long run, we will have a large number of farmers from work,” said Calip Rajland, a farmer in Kentucky as president of the American soybean association. “We are still calling from the last trade war.”
The American soybean association urges the Trump administration to conclude a new trade deal with China to avoid a long -term trade war.
American corn farmers, who sell about 2 percent of their products to China, were ready about the commercial battle. They welcomed the decision of Mr. Trump to stop the definitions of punishing other countries that could lead to more revenge against other American farmers and companies. But they urged the Trump administration to focus on negotiations that open the market access.
“The longer the uncertainty, the more worried that our farms can harvest billions of corn, which they will not have reliable markets,” said Kenneth Hartmann Junior, president of the National Corn Association. “Our farms want certainty that our customers at home and abroad will buy our products in the coming months and years.”
The concern of the impact of the definitions was evident on Wednesday, as Jameson Jarir, the American commercial representative, witnessed before the House of Representatives Roads and means and faced questions from Republicans who were concerned about revenge against other countries against American agriculture exports.
Actor Darren, a Republican of Illinois, said he appreciated what Mr. Trump is doing to treat long commercial barriers, but his voters were worried.
He said: “While I speak with my farmers, there is a lot of anxiety, a lot of tension, and a lot of uncertainty, because when we enter into a commercial war, it is usually the first in the trade war is agriculture.”
Mr. Jarir answered that “all countries have announced that they will not be missing” except for China. He added that Indonesia, India and many other countries “said positively that we are not discussing”, while some countries, such as Vietnam, were unilaterally, reducing the customs tariff for American agricultural products. Mr. Jarir did not mention that Europe announced reprisals on Wednesday or that Canada has been revenge on the previous rounds of definitions.
Mr. BESSENT reduced the effect of China’s response on Wednesday morning, the FOX business network searches that the United States is relatively little to China.
“China can raise the definitions, but what is that?” Mr. Bessent, who owns up to $ 25 million in agricultural lands in Northern Dakota, said he must save.
Revenge can force the Trump administration to revive rescue operations for American farmers who were shown during the first president’s term.
Brock Rollins, Minister of Agriculture, said on Wednesday that this relief package was considered and that “everything is on the table.”
At the White House cabinet meeting on Thursday, Mrs. Rollins noted that farmers and livestock breeders were struggling because of inflation and were concerned about the uncertainty about trade, but they supported Mr. Trump’s economic agenda.
“Your idea of using the customs tariff to ensure that we are offering and America first, no one understands this better than our farms and farms,” said Ms. Rollins. “The period of uncertainty in which we are, and they know that your vision will transfer us to the era of prosperity.”
On Thursday, Mr. Trump presented little clarity on a truce with China, but the president expressed general optimism about the economic relationship.
When asked about the possibility of an agreement with China, Mr. Trump said he expected to “finish working on something very good for both countries.”
The President initially praised the commercial deal with China during his first term as success, but China eventually failed to honor the promises it made to buy large quantities of American agricultural products. Meanwhile, almost all the customs tariff revenues that were collected in the United States were used during that trade war to provide relief for the agricultural industry.
Farmers generally resist government bulletins, but Mr. Rajland of the American Soy Corporation said that federal relief may be necessary in this case.
He said: “If we continue to use as a negotiating tool, and we will be an ugly pregnancy on behalf of the biggest image, we will have to obtain an economic package to help us maintain the lights.”
Tony Rom The reports contributed
