Editorial: Congress must act to stop trade war
Republican presidential nominee Donald Trump observes the crowd’s reaction as he speaks about the differences between him and Democratic presidential nominee Hillary Clinton on Sep. 13 in Clive, Iowa.
April 7, 2018
The Department of Agriculture Economic Research Service projects net farm income in 2018 will be the lowest since 2002 in real-dollar terms. This was the projection before President Trump started announcing new economic tariffs targeted at China.
A trade war of sorts seems inevitable with U.S. farmers paying the highest price. Senators Joni Ernst and Chuck Grassley should be fighting in Congress to protect all agriculture producers from the president’s destructive trade policy.
Producers are facing a 25 percent tariff on soybeans, pork, ethanol and other farm and non-farm goods. Last year, China imported about 30 percent of the U.S. total soybean production, a value of about $14 billion. China is also lodging complaints with the World Trade Organization claiming the U.S. is violating the “most favored nations” clause.
Now, the livelihoods of farmers across the country are being used as a pawn in an illogical trade war. One outcome seems clear if we continue on this path to a trade war with China — rural farm producers will pay the price for Trump’s attacks on free trade.
Farmers could see their markets reduced further if Trump follows through with additional threats to free trade such as hijacking the NAFTA renegotiations with Mexico and Canada. China, Canada and Mexico represent the three largest trading partners of the U.S.
Furthermore, all four countries have benefited greatly due to the free-trade agreements that allow all producers to have access to larger markets.
It is now time for congressional leaders to put a stop to Trump’s destructive trade agenda. Congress has the power to set tariffs thanks to the Constitution. The president only has the power to raise or lower tariffs based on national security interests from a Cold War era law passed in 1962.
Trump’s own top economic advisor, Gary Cohn, resigned due to his strong opposition to the new tariffs. Iowa’s senators and representatives must convince the Senate Majority Leader Mitch McConnell and Speaker of the House Paul Ryan to act before it is too late and stop the president’s march toward a trade war we can’t win.
