The United States is the world’s largest ag exporter, with sales generating 20 cents of each $1 in farm income, so farm groups fear they will be casualties of a trade war if the Trump administration restricts imports of steel and aluminum. In a letter to Commerce Secretary Wilbur Ross, 18 food and agricultural organizations said any nation could claim national security as the reason to keep out U.S. food exports.
The White House is expected to decide soon, based on an investigation that began in April, whether to impose tariffs on imported steel and aluminum on grounds they damage an industry vital to U.S. national security. “U.S. agriculture is highly dependent on exports, which means it is particularly vulnerable to retaliation,” wrote the groups. “Many countries that export steel to the United States are also large importers of U.S. agriculture products.”
The European Union reportedly is preparing a list of possible targets for retaliation, including orange juice and dairy products. During the presidential campaign, Trump said China, the No. 1 customer for U.S. farm exports, was dumping steel on the world market.
To read the letter by the agricultural groups, click here.