Sioux City Journal

Sioux City, Iowa

March 7, 2018

It’s hard to find supporters outside the administration for President Trump’s plan to impose tariffs on steel and aluminum entering the United States.

Typical was this reaction on Monday from House Speaker Paul Ryan.

“We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan,” AshLee Strong, a Ryan spokeswoman, said in a statement.

Trump wants to slap a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum. So far, the European Union, Canada and China have threatened tariffs on American-made products in return.

The primary reason we do not back the tariffs is their potential negative impact on farm country. Agriculture states like Iowa stand to lose in a trade war.

Consider these reactions from the Midwest:

•“Every time you do this, you get a retaliation,” Senate Ag Committee Chairman Pat Roberts (R-Kan.) told reporters. “And agriculture is the number one target. I think this is terribly counterproductive for the (agriculture) economy and I’m not very happy.”

•“Our farmers are the first target and we know that’s where the unintended consequences will fall is on our farmers and on our manufacturers,” Iowa Gov. Kim Reynolds said. Those “unintended consequences,” she said, could be “devastating” to Iowa and other agriculture states.

Iowa leads the nation in exports of pork, corn and feed grain, ranks second for soybean exports, and is second for overall value of agriculture exports. If Trump moves ahead with his plan for steel and aluminum tariffs and other countries target U.S. agriculture products for retaliation, Iowa will feel the pain as much as, if not more than any state.

This, at what is an already challenging time for the farm economy. Net farm income fell 46 percent in Iowa since 2015, reported David Peters, associate professor and extension rural sociologist at Iowa State University, in a new publication, Rural Iowa at a Glance. American net farm income in 2018 is expected to fall to a 12-year low, according to USDA Economic Research Service’s most recent 2018 Farm Sector Income Forecast.

We urge all farm-state leaders, regardless of political party affiliation, to form a strong, united front of opposition to these tariffs.

Slow tariff talk for Hoosier’s sake

South Bend Tribune

South Bend, Ind.

March 8, 2018

Our local congressional representatives and U.S. senators should urge the Trump administration to slow down in its push to impose tariffs on foreign steel and aluminum.

The proposals have been touted as a fix to declining U.S. production numbers and shrinking employment in the steel and aluminum industry here. But the rising cost of steel and aluminum that will result from the tariffs could have a significant impact on area businesses.

The RV industry in Elkhart County, which the Brookings Institution rates as one of the top five counties in the country when it comes to exports as a percentage of GDP, would be vulnerable if foreign governments chose to retaliate with sanctions of their own.

South Bend-based Masterbilt would see its prices increase across the board as domestic steel and aluminum producers match prices with tariffed imports.

Masterbilt, which produces 90 percent of its parts with stainless steel or aluminum, could see its margins narrow along with the rising cost of material used make its products.

The proposed tariffs have caused deep concerns among the Republican-controlled Congress. Even Rep. Jackie Walorski (R-Ind.), who has rarely challenged President Trump, is concerned about the president’s proposal and asked him to reconsider his idea to avoid the potential “harmful impact” on Hoosier workers and businesses.

U.S. Sen. Todd Young praised the president for addressing unfair trade but asked that measures be “balanced and implemented in a targeted approach.” U.S. Rep. Fred Upton (R-Ind.), and U.S. Sen. Joe Donnelly (D-Ind.), didn’t comment, but Donnelly said he would review the measures once they were implemented.

Now is the time to review the potential impact tariffs would have on the local economy, and our area lawmakers need to step up to ensure the best interests of Hoosiers is their first priority.

According to the Bureau of Labor Statistics, there are more than 22,000 workers directly employed in steel and aluminum production in Indiana and more than 300,000 workers employed in industries that use those materials. It’s easy to see the potential impact tariffs could have, and it could become even worse if other countries choose to retaliate with their own set of sanctions. Agriculture has been frequently mentioned as a potential target, another big Hoosier industry.

Our local congressional representatives should urge the administration to tap the brakes on its movement toward sanctions on products critical to Indiana’s economy and the well-being of their constituents.

Trade wars not good or easy to win

Mankato Free Press

Mankato, Minn.

March 8, 2018

Despite widespread opposition from his own party, business leaders and allies around the world, President Trump imposed stiff tariffs on steel and aluminum.

While aimed at protecting some U.S. steel industry jobs, the effects will be felt harshly by consumers who will pay more for everything from beer cans to automobiles and by area farmers and manufacturers who are likely to see their exports devalued as other countries counter with their own tariffs.

One of the strengths of the Greater Mankato economy has always been that it is well diversified. But it is also heavily tilted toward manufacturing and agribusiness – sectors that will find little to cheer in the trade wars likely to be triggered by the 25 percent steel and 10 percent aluminum tariffs.

Shortly after making the tariff announcement – one that surprised even Trump’s top staff, including his own economic adviser Gary Cohn who later resigned – Trump tweeted that “trade wars are good, and easy to win.”

As with many things the president glibly states, his views on trade wars are contradicted by history and fact. Like real wars, trade wars have a way of escalating, are rarely “won” and are ever harder to extract oneself from.

Trump’s last-minute decision to exclude Canada and Mexico from the new tariffs – if the countries give concessions on renegotiation the NAFTA agreement – may seem like some solace. But the move could do even more serious harm to Minnesota businesses and farmers.

That’s because the Minnesota economy, and particularly farm income, benefits greatly from NAFTA, which heavily favors farmers exporting corn, soybeans and other farm products.

And it’s not just those who export hogs or corn who will be hurt by a redrawn NAFTA or by retaliatory tariffs by China and other trading partners.

Those farm products, many flowing to Minnesota’s two largest trading partners, Canada and Mexico, not only bolster farm income but have a widespread economic impact across the state’s economy. A renegotiated NAFTA is certain to make those farm exports less valuable and hammer the agribusiness economy.

The state is also home to a large number of major corporate headquarters – such as 3M, CHS, Land O’Lakes – that provide so much employment and economic benefit. Those companies and thousands of smaller ones that make goods that are exported benefit mightily from free global trade.

While Trump’s move is broadly opposed by congressional Republicans, it’s unlikely they will move to blunt the tariffs through legislation. Presidents have long been given broad authority to handle international trade without Congress interfering. The only hope is that Trump, who is not known for sticking with his pronouncements, can be swayed to divert from a path that will lead to higher prices for consumers and a net loss of jobs for Americans.