Agriculture isn't nearing a trade war tariffs crisis — 'it is a full-blown crisis already,' farmers say
The clock is ticking on trade deals that the U.S. will need to strike with many nations, most notably China, to avoid what Trump’s treasury secretary has described as an “unsustainable” tariffs war.
The clock is ticking on trade deals that the U.S. will need to strike with many nations, most notably China, to avoid what Trump’s treasury secretary has described as an “unsustainable” tariffs war. But in the U.S. farming sector, the damage has already been done and the economic crisis already begun.
U.S. agriculture exporters say the global backlash to President Donald Trump’s tariffs is punishing them, especially a decline in China buying of U.S. farm products, leading to canceled export orders and layoffs. Peter Friedmann, executive director of the Agriculture Transportation Coaliti (AgTC), a leading export trade group for farmers, tells CNBC the number of canceled purchases of U.S. agriculture should not be described as approaching a crisis. “It is a full-blown crisis already,” he said.
Data released by the U.S. Department of Agriculture on Thursday revealed China made its biggest cancellation of pork orders since 2020, halting a shipment of 12,000 tons of pork.
AgTC says “massive” financial losses are already being shared by its members as a result of the trade war, based on reports it is receiving from member companies.
A wood pulp and paperboard exporter reported to the trade group the immediate cancellation or hold of 6,400 metric tons in a warehouse and a hold of 15 railcars sitting in what is known in the supply chain as “demurrage,” when fees are charged for delayed movement of goods. Meanwhile, the exporter said there are 9,000 metric tons on the water to China expected to arrive on May 13 and facing the threat of costly diversion to Chinese bonded warehouses or to other countries as Chinese buyers may refuse the cargo and abandon it at port.
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