(Image source from: Farm Flavor)
In consequence to tariffs levied on imports by the United States President Donald Trump's Administration, Mexico on Thursday doubled its tariff on U.S. pork, and China on Friday is set to implement 25 percent tariffs on pork, soybeans, and tobacco from the U.S.
The duties will make U.S. products more high-priced in those countries, encouraging overseas buyers to find inexpensive suppliers elsewhere around the world.
North Carolina farmers depend on those foreign markets to stay afloat. The state produces the most tobacco in the country and is the second-largest pork producer in the U.S., China, and Mexico also are two of the state's top trading partners for agricultural goods.
The state's agriculture leaders concern regarding what the tariffs could cost North Carolina's biggest industry.
"Probably what's most problematic about the tariffs is that, why should agriculture have to be at the point of the spear and take all the retaliation for other industries when the administration was going after aluminum and steel?" North Carolina Farm Bureau President Larry Wooten said. "Agriculture always always gets the brunt of the retaliation."
State Agriculture Commissioner Steve Troxler said agricultural exports to China, Mexico, and Canada, which also is slapping tariffs on the U.S. goods, were worth more than $1.1 billion last year to North Carolina farmers.
"It looks like every trade war that we've ever been involved in. Agriculture in the United States becomes a target, I guess because it's so big," Troxler said. "Everybody eats, so if you want to hit somebody in the belly, so to speak, go for agriculture."
Farmers had hoped for months that the threat of tariffs was simply a negotiating tactic in trade negotiations, but no new trade deals are in place.
"Our farmers are pawns in that whole discussion," Wooten said, noting that it takes years for individual farmers, industries, and states to build international trade relationships.
Andy Curliss, chief executive of the North Carolina Pork Council, said Mexico and China combine to purchase 12 to 15 percent of the state's pork products.
The soybean futures market has already taken a hit, and the tariff on soybeans hasn't even gone into effect yet, Wooten added.
By Sowmya Sangam
