A new economic study paints a troubling picture of the potential results a new U.S.-China trade war could have on hundreds of thousands of rural communities.
It shows that American-imposed tariffs would come at a steep cost to American farmers and ranchers while benefiting Brazil and Argentina.
The study was commissioned by the American Soybean Association and the National Corn Growers Association and showed an immediate drop in corn and soy exports to the tune of hundreds of millions of dollars.
Brazil and Argentina would immediately step in to claim the lost market share.
“The study highlights the dangers that come with broad tariffs on imports,” says NCGA Lead Economist Krista Swanson. “While launching tariffs may seem like an effective tool, they will boomerang and cause unintended consequences.”
ASA Chief Economist Scott Gerit says the study shows a significant trade war would easily compound the challenges placing stress on America’s producers.
