A leading U.S. agricultural economist suggests that the trade issues with China serve as a vehicle for negotiations. Purdue University agricultural economist Chris Hurt says China may be simply signaling the U.S. that the nation wants to negotiate, just as the U.S. has seemed to signal to China in crafting the tariffs. That seems to be the case, too, according to action by some Trump administration officials. Hurt says U.S. agriculture is a natural target for China:
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China is threatening a 25 percent tariff on U.S. pork. Last year, China bought 525 million pounds of pork from the U.S. However, rven with a 25 percent tariff, Hurt does not expect the U.S. to lose all business in China, which would cost the U.S. producer two dollars per-head. Further, he points at a recent downturn of four dollars in the futures market:
Soybeans represent roughly $12.5 billion of the $28 billion of U.S. ag products exported to China. While targeted by China, he says it appears the U.S. and China are more interested in negotiating:
Hurt points to the proposed tariffs on U.S. soybeans in response to the U.S. tariffs on aluminum and steel as a signal of negotiation. He says that China needs U.S. soybeans, and would rather not start a trade war. The list of proposed tariffs by China on U.S. imports also includes a 25 percent tariff on U.S. pork.