Economists: Situation could change quickly as Pres. Trump doubles down on trade with China

President Trump is doubling down on his efforts to level the playing field on trade, including doubling the tariff rate on China.

Arlan Suderman with StoneX says China is a unique trade partner but notes the President has no time to waste.

“The thing to understand about China is they value relationship negotiations. You may have different values than I do, but if we have a relationship of respect, we can do business. So, President Trump focused on that during his first term, speaking very respectfully on Xi Jinping, and so, as a part of that Chinese culture, they like to negotiate face to face. But they kept dragging things out, and they forced Trump into 13 face-to-face negotiations, Trump and his team, and that drug it out for several years and bought time for China, and Trump’s saying, ‘This time, I don’t have that kind of time.’”

Suderman says Trump might also feel like he has the momentum right now. China’s economy is struggling far worse than it was in Trump’s first term, leaving them particularly vulnerable. Trump doubled their tariff rate to 20 percent this week after a previous 10 percent last month.

Related Stories
Corn Refiners Association VP Kristy Goodfellow offered insight into the Feeding the Economy Report’s key findings, showing the breadth of agriculture’s economic impact and the challenges ahead.
National Association of Wheat Growers President Jamie Kress discusses how rising fertilizer prices pressure wheat producers and the Administration’s consideration of lowering duties on Moroccan phosphate.
Justin Tupper with the U.S. Cattlemen’s Association joins us to discuss the USDA’s voluntary labeling updates, industry priorities, and the outlook for U.S. cattle producers.
For agriculture, the meeting is seen as a potential turning point, with markets watching closely for any signals on trade, exports, and future purchasing commitments.
As farmers and ranchers navigate rising input costs, lawmakers are considering a roughly $15 billion aid package to help, which would be tied to the spending bill for the war with Iran.
Lower costs improve competitiveness, but demand remains uncertain.

LATEST STORIES BY THIS AUTHOR:

University of Illinois Ag Economist Gary Schnitker says early projections indicate soybeans will be more profitable than corn in 2026.
Evan Keppy, a member of Iowa’s North Scott FFA Chapter, shares how the National FFA Organization helped shape his leadership skills.
Farm CPA Paul Neiffer joins us to provide an updated analysis of projected ARC and PLC payments and potential delays due to the ongoing government shutdown.
Approximately 42,000 birds were affected in the outbreak, officials said.
Beef demand could be influencing other economic sectors, as consumers adjust spending habits to prioritize higher-priced beef products.
AFBF Economist Bearnt Nelson joins us with insights into current turkey flock sizes, HPAI concerns, and production impacts on holiday demand.