Due to cancelled orders from China, President Trump’s tariffs have thrown the US agriculture sector into a “full-blown crisis,” prompting farmers to fire employees or close their operations, according to a trade group.
The Department of Agriculture reports that China halted a supply of 12,000 tonnes of pork last week, the greatest cancellation of pork purchases since the COVID-19 epidemic in 2020.
China’s soybean orders, meanwhile, fell to just 1,800 tonnes in the week ending April 17, a significant decrease (more than 97%) from the 72,800 tonnes bought the previous week, according to the USDA.
Wes Shoemyer runs a family farm in Clarence, Mo., that raises cattle and grows grains. He’s nervous about whether US exporters will find foreign markets for his crops.
Trade between the two biggest economies in the world has been severely disrupted by Trump’s 145% tariff on Chinese exports and the country’s retaliatory 125% charge on the US.
According to the Vizion Global Ocean Bookings Tracker, China-to-US vessel traffic is down 44% from a year ago due to a sharp rise in Chinese vessels cancelling sailings to US ports.
The cancellation of Chinese contracts would have an impact on the entire business, according to Peter Friedmann, executive director of the Agriculture Transportation Coalition. Dockers will lose their jobs as a result of cancelled sailings, which will first impact the trucks that deliver commodities from the ports and subsequently cause farms to close.
Source: New York Post
Image Credit: FreePik
