How China Trade Agreement Impacts Wisconsin Farmers
China agrees to purchase $80 billion of US food, agricultural and seafood products.
The deal doesn’t get rid of import taxes, or tariffs, but it does reduce some of them, Trump said at the signing at the White House.
The deal also includes a commitment from China to import an additional $200 billion in American goods and services over the next two years. That includes $80 billion worth of United States food, agricultural and seafood products.
Vice President Mike Pence congratulated the president on the trade war and the deal.
“Early in this administration, you made it clear that the era of economic surrender was over, and you took a strong stand for American jobs and American workers,” he said. “You said to our friends in China that things had to change, and thanks to your leadership, today, the change begins.”
“Nearly one-third, $1.43 billion of Wisconsin agriculture and food exports, are affected by the countervailing tariffs in China,” according to a fact sheet from the center.
University of Wisconsin-Madison political scientist Jon Pevehouse said even if all tariffs are lifted, there’s no guarantee Wisconsin farmers will get their Chinese markets back.
“There have been instances where U.S. farmers have been the victim of, say, retaliatory tariffs, where then those tariffs get lifted, and the state, whether it’s Mexico, Germany, whoever, doesn’t go back to buying Wisconsin products,” Pevehouse said.
Trump said he’ll soon start negotiations on a “Phase 2” agreement to end tariffs on Chinese goods.
China retaliated against American tariffs with its own tariffs on important Wisconsin products like soybeans and dairy. Aaron Stauffacher of the Edge Dairy Farmer Cooperative said he hopes the second phase trade deal negotiations can address them.
“Make no doubt about it, our exports have decreased over to China as a result of the retaliatory tariffs situation,” he said.
Pevehouse said agriculture “gets thrown under the bus” because it isn’t the most important issue in the trade war — it’s leverage. Tariffs on specific products are used to get other concessions, like intellectual property protections, which are also included in the Phase 1 deal.
“Trade deals are often not about trade anymore,” Pevehouse said.
The U.S. Senate will soon vote on implementing another trade deal, the U.S.-Mexico-Canada Agreement (USMCA). In a statement, Wisconsin’s Democratic U.S. Sen. Tammy Baldwin expressed support for the USMCA, with some reservations.
“The USMCA implementing legislation includes many changes I have pushed for with the Trump administration, including truly enforceable labor standards that benefit our workers, and making sure that we confront Canada’s unfair trade barriers and Mexico’s limits on Wisconsin cheese exports so that we have a trade deal that increases market access for our Wisconsin dairy farmers and cheesemakers,” Baldwin said.
Listen to the WPR report here.
How The ‘Phase 1’ US-China Trade Deal Will Affect Wisconsin Agriculture was originally published by Wisconsin Public Radio.
More about the Trump Tariffs
- Baldwin Calling on Trump Administration to Take Action and Support Wisconsin Hardwood Businesses Hurt by Trade War - U.S. Sen. Tammy Baldwin - Feb 25th, 2020
- Trade War Wounds May Heal Soon - Erik Gunn - Feb 21st, 2020
- How China Trade Agreement Impacts Wisconsin Farmers - Miranda Suarez - Jan 16th, 2020
- Trump Tariffs Have Cost State $800 Million - Miranda Suarez - Dec 10th, 2019
- U.S. Senator Tammy Baldwin Seeks Investigation into Possible Market Manipulation Regarding Market Bets Timed to Trump’s Comments on Trade War & Other Geopolitical Events - U.S. Sen. Tammy Baldwin - Oct 21st, 2019
- Port Milwaukee Shipping Up in 2019 - Danielle Kaeding - Oct 21st, 2019
- Stuck to Gallagher: Does Your Party Care About Small Business? - State Rep. Amanda Stuck - Oct 10th, 2019
- Evers Blasts Trump “Tweet” Trade Wars - Erik Gunn - Sep 16th, 2019
- Donald Trump’s Administration Laughs in the Face of Struggling Farmers - Democratic Party of Wisconsin - Aug 13th, 2019
- Gov. Evers Calls on President Trump to Listen to Farmers, End Unproductive Trade Wars - Gov. Tony Evers - Aug 12th, 2019
- Harley 2nd Quarter Earnings Down 19% - Brady Carlson - Jul 24th, 2019
- State’s Exports Down in 2019 - Hope Kirwan - Jul 23rd, 2019
- U.S. Senator Tammy Baldwin Urges Trump Administration to Invest in Dairy Innovation with Trade Aid - U.S. Sen. Tammy Baldwin - Jul 19th, 2019
- U.S. Senator Tammy Baldwin Calls on President Trump to Stop Making False Claims About Agriculture Purchases from Mexico and China, and Start Telling Wisconsin Farmers the Truth - U.S. Sen. Tammy Baldwin - Jul 12th, 2019
- Data Wonk: Democrats Now The Free Trade Party? - Bruce Thompson - Jun 26th, 2019
- Murphy’s Law: Trump Tariffs Killing Wisconsin - Bruce Murphy - Jun 4th, 2019
- Senator Baldwin Demands Answers from Trump About $62 Million Going to Brazilian Crooks Instead of American Farmers - U.S. Sen. Tammy Baldwin - May 23rd, 2019
- Data Wonk: How Walker, Trump Hurt Dairy Industry - Bruce Thompson - Mar 13th, 2019
- Ron Johnson Calls for Ending Tariffs - Hope Kirwan - Feb 8th, 2019
- Harley-Davidson Earnings Down - Patty Murray - Jan 31st, 2019
- Tariffs Affecting Great Lakes Ports - Danielle Kaeding - Jan 5th, 2019
- Trump Tariffs Hurt Milwaukee Port - Danielle Kaeding - Sep 4th, 2018
- Harley Riders Oppose Boycott of Company - Laurel White - Sep 3rd, 2018
- Answer the Question, Scott Walker - One Wisconsin Now - Aug 13th, 2018
- Trump’s Aid to Farms Gets Mixed Reviews - Rich Kremer - Jul 26th, 2018
- Voters Unhappy About Tariffs, State Roads - Chuck Quirmbach - Jul 19th, 2018
- Businesses Complain About Trump Tariffs to Johnson - Chuck Quirmbach - Jul 17th, 2018
- Canada’s Tariffs Target Wisconsin - Scott Gordon - Jul 16th, 2018
- Data Wonk: How Trump Threatens State’s Exports - Bruce Thompson - Jul 5th, 2018
- Walker Avoids Harley Issue at Parades - Chuck Quirmbach - Jul 5th, 2018
- Campaign Cash: Harley Gave Generously to Republicans - Wisconsin Democracy Campaign - Jun 26th, 2018
- Harley-Davidson Job Losses: Walker Owns This - Democratic Party of Wisconsin - Jun 26th, 2018
- Scott Walker Flies While Harley Davidson Flees - One Wisconsin Now - Jun 26th, 2018
- Op Ed: Trump Dead Wrong on Canadian Trade - John Torinus - Jun 21st, 2018
- Op Ed: Trump’s Tariffs Hurt Wisconsin Economy - John Torinus - Jun 11th, 2018
- Trump Tariffs Threaten State’s Exports - Steven Deller, Tessa Conroy and Matthew Kures - May 13th, 2018
- Op Ed: Trump Tariffs Will Harm Trump Country - John Torinus - Mar 14th, 2018
- Statement Regarding Governor Walker’s Phone Call with U.S. Department of Commerce Secretary Wilbur Ross - Gov. Scott Walker - Mar 9th, 2018
- Op Ed: Ryan Finally Stands Up to Trump - Gregory Humphrey - Mar 8th, 2018
- Governor Walker Visits Wisconsin Employers in Oshkosh, Janesville that Have Expressed Concern with President Trump’s Proposed Tariffs on Steel and Aluminum - Gov. Scott Walker - Mar 6th, 2018
- Governor Walker Releases Statement on the Trump Administration’s Proposed Steel and Aluminum Tariffs - Gov. Scott Walker - Mar 2nd, 2018
- U.S. Senator Tammy Baldwin Leads Dairy State Senators in Urging Agriculture Secretary Perdue to Take Immediate Action for Dairy Farms Harmed by Canadian Trade Barriers - U.S. Sen. Tammy Baldwin - Apr 27th, 2017
- U.S. Senator Tammy Baldwin Calls on President Trump to Hold China Accountable on Trade During Upcoming Summit - U.S. Sen. Tammy Baldwin - Apr 5th, 2017
- Norquist: Trump Tariffs Will Hurt State Workers - John Norquist - Feb 2nd, 2017