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
Real Ag’s Shaun Haney explains how farmers are approaching risk management and the steps they’re taking to strengthen profitability through better financial planning.
ASFMRA’s George Baird shares insight on spring planting progress, acreage trends, and the financial factors influencing Mid-South farmers this season.
Jeramy Stephens with National Land Realty explains how the Supreme Court’s tariff ruling and ongoing ‘America First’ trade policy raise new questions about U.S. farmland values and agricultural market stability.
Texas lawmakers secure funding for sterile fly production as officials work to stop the New World screwworm from spreading into the U.S. cattle herd.
Geopolitical risk is rapidly increasing fertilizer price volatility before planting.
China may no longer serve as a consistent anchor market for U.S. cotton exports. Lewis Williamson of HTS Commodities joined us to discuss the factors influencing planting decisions, river conditions, and what producers are considering as they finalize acreage plans for the season.

LATEST STORIES BY THIS AUTHOR:

Global food prices rose slightly in the latest FAO Food Price Index as vegetable oils, cereals, and meat increased, offsetting declines in dairy and sugar.
University of Arkansas’ Allen Szalanski discusses a news study on rice stink bugs, what it could mean for farmers, and pest management strategies for the future.
Watch AARP Live tonight at 7:30 PM ET on RFD-TV to learn more about ways to reduce expenses and make smart financial choices.
Valley Irrigation’s Darren Siekman explains the advantages of their new pivots for growers managing acreages of up to 60 acres.
The San Antonio Stock Show and Rodeo concluded last night, marking the end of another successful year showcasing youth exhibitors, livestock producers, and the spirit of agriculture.