This week, President Donald Trump flexed the power of the U.S. when it comes to trade. Mexico and Canada made concessions to avoid tariffs, and now Trump is looking at the European Union.
“Well, we have massive deficits with the European Union, massive like $350 billion, if you can believe it,” Pres. Trump said. “They don’t take our farm products. They don’t take our cars.”
Trump says the EU has abused the U.S. for years, and that needs to change. He also repeated the notion that it could be in Canada‘s best interest to become the 51st state of the United States, saying they have a lot more to lose than we do.
“Why are we willing to lose between $100 billion and $200 billion a year?” Trump said. “We don’t need that. As a state, it’s different, and there are no tariffs. I’d love to see that, but some people say that would be a long shot. If people wanted to play the game right, it would be 100% certain that they become a state.”
This week, Canadian Prime Minister Justin Trudeau offered concessions to keep the tariffs at bay for at least a month. President Trump is expected to keep in talks with Canada and Mexico over the next 30 days.
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U.S. trade talks with China resume, but meat industry leaders say dealing with shifting demand and market uncertainty is nothing new in this side of the ag sector.
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Tariffs are pushing up input costs, with fertilizer prices rising $100 per ton and machinery costs climbing due to steel and parts duties.
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