Clements: The continuing trade war between the U.S. and China is like a game of ping pong, says the American Farm Bureau Federation. And AFBF economist Veronica Nigh says that just like the back-and-forth tariff announcements, a match of ping pong includes multiple games.
Nigh: There are multiple different rounds of tariffs by the U.S. and then retaliatory tariffs from China that are all building upon one another. And, at some point someone is going to win the match, but there are a lot of rounds in between the beginning and the end, and at this point we don’t know how many rounds there will be.
Clements: Trade issues are creating volatility in commodity markets for farmers and ranchers. With the announcement of more tariffs on the horizon this week, Nigh expects that volatility to continue.
Nigh: What I think multiple rounds of tariffs with China and with some of our other trading partners suggest is that we should be prepared for increased volatility into the future. That’s something I know is frustrating because its outside of farmers’ and ranchers’ control, but it certainly looks to be a mainstay as we continue to deal with these trade and tariff wars.
Clements: Nigh says navigating through the tariffs may be challenging, but Farm Bureau has information that can be helpful to farmers and ranchers.
Nigh: We put out a Market Intel article where we tried to capture all of the tariff lines that are on any of the retaliatory tariffs list by China into one document, so it helps us to look across products and ultimately what is the tariff that our products are going to face as they go into the Chinese market.
Clements: Find the Market Intel article at fb.org. Micheal Clements, Washington.