Ag economist: US and China will both lose in a trade war
An ag economics professor with Purdue University says the US and China will both lose in a trade war.
Wally Tyner says Brazil would gain the most if tariffs are implemented as planned on July 6.
“Our estimate is that the US and China each lose $2.6 billion a year because of these tariffs and Brazil gains $2.2 billion a year,” he says. “That’s why I say lose-lose for the US and China and win for Brazil
Trump has threatened to impose additional trade tariffs on $200 billion worth of Chinese goods, after China retaliated against Trump’s $50 billion in tariffs announced Friday.
Tyner tells Brownfield soybean farmers will likely not see an immediate impact, but tariffs will hurt farmers if they go into effect and stay in place for several years.
“Our analysis is the US is going to lose some Chinese market, Brazil is going to come in and take that away from us, and then Brazil is going to grow more soybeans,” he says. “And all that takes time.”
China has vowed to retaliate against tariffs.
Audio: Wally Tyner, Purdue University