By: Ryan Fitzpatrick, Deputy Director of the Clean Energy Program
And US farmers are being hit particularly hard by Chinese counter-tariffs – especially soy, corn and wheat growers, who recently experienced the largest export price drop since 2011. This has a ripple effect on the industries that provide inputs to agricultural production, freight railroads, trucks and barges in the transportation sector that move the goods, and the communities most tied to farming, where a lack of revenue is felt by local small businesses.
The fact that the Trump administration is considering a $12 billion farm bailout should be a sign that things are not going quite as planned. Already, there is great speculation that markets lost at the hands of a trade war will never return, putting at risk massive private investment that supports the production and supply chain associated with this industry.