window.dataLayer = window.dataLayer || []; function gtag(){dataLayer.push(arguments);} gtag('js', new Date()); gtag('config', 'UA-29484371-30');
Wednesday , December 11 2019
Rugby Coming Soon 728
Darrington Park 728
Amy’s Astronomy
McDonalds BBall 2019 728
West Texas Test Drive 728
EPCON_2020 728
Mountains 728
High Desert 728
Utep Football Generic 728
Bordertown Undergroun Show 728
ENTERPRISE 728
STEP 728
Rhinos 2019/2020 728
Home | Tag Archives: trump trade war

Tag Archives: trump trade war

Trump’s tariffs could hurt Texas, U.S. economies as much as Mexico’s, border leaders and analysts say

With a looming trade war with Mexico on the horizon, Texas’ proximity to its southern neighbor could spell economic trouble for the state’s consumers and workforce.

But it’s the added dynamic of how this country trades with Mexico that could do far greater damage to the state and national economies than President Donald Trump’s current trade battles with China or Canada, analysts warn.

Late Thursday, Trump announced he would begin imposing 5% tariffs on all products imported from Mexico on June 10 if that country didn’t do more to curb the flow of unauthorized immigrants traveling through Mexico on their way to the United States. Trump said he would increase it to as high as 25 percent by October if Mexico doesn’t act.

Since October 2018, when the federal government’s current fiscal year began, more than 460,000 undocumented immigrants have been apprehended on the southern border, surpassing 2018’s fiscal year total of 396,579. The administration has built temporary holding facilities in El Paso and the Rio Grande Valley to house more immigrants and announced earlier this month that more would be built within a couple weeks.

The tariff announcement comes as the Trump administration escalates its trade war with China, which has led both countries to impose billions in duties on goods imported to their respective countries.

But the impact from tariffs on Mexican goods could have a deeper reach because of just how many U.S. products contain parts or labor supplied by both countries, said Shannon O’Neil, the vice president, deputy director of studies, and Nelson and David Rockefeller senior fellow for Latin America Studies at the Council on Foreign Relations.

“The way U.S. workers will be hit by this is very different. The imports coming in from Mexico have the highest percentage of U.S.-made products within them,” she said. “On average, 40 percent of products are made in the U.S. so those American workers that are making that 40 percent are going to get hit as hard as their Mexican counterparts.”

Some industries — including automakers — import and export products back and forth across the border more than once, which means those goods could be subject to multiple tariffs. For example, two of the top U.S. exports to Mexico are auto and computer parts, while two of the top imports from Mexico are auto parts and computers, according to trade data analyzed by WorldCity.

The threat by the president comes after Mexico recently became the United States’ largest trading partner — it has been Texas’ top trade partner for several years. Through March, more than $150.58 billion in two-way trade passed through the countries’ ports: The U.S. exported $63.95 billion worth of goods and imported $86.63 billion worth of goods from Mexico. Texas’ ports at Laredo and El Paso are the the two busiest on the border, with $55.8 and $18.6 billion passing through those regions, respectively.

That means the effect from tariffs will be felt first in border states, O’Neil said.

“Many of those jobs in those regional supply chains where goods and parts come back and forth across the border, many of those jobs are in Texas,” she said. “And the whole logistics industry, the people whose lives depend on trade that move things back and forth, all of those jobs will get hit as this trade gets more expensive.”

Ray Perryman, the president and CEO of the Perryman Group, said a 5 percent tariff, once absorbed through supply chains and market adjustments, could eliminate more than 400,000 U.S. jobs and cause economic losses he estimated at $41.5 billion in gross domestic product.

“If Mexico were to retaliate and impose tariffs on the U.S., which is likely, the effects would be even greater. Texas would bear the lion’s share of this loss given the extensive commerce that occurs between the state and Mexico,” Perryman said in an emailed statement.

Some of the state’s lawmakers and business groups condemned the president’s move and questioned its legality.

“[We] strongly opposes President Trump’s threat to impose unilateral tariffs on Mexican imports. Our analysis suggests the tariffs may not rest on firm constitutional or legal ground, and probably violate international agreements including the North American Free Trade Agreement and those underlying the World Trade Organization,” said Laredo Mayor Pete Saenz, who serves as chairman of the Texas Border Coalition, a group of elected officials and private sector leaders that advocates for more resources at the nation’s land ports.

U.S. Rep. Henry Cuellar, D-Laredo, said the announcement could negatively impact ongoing negotiations between the United States, Mexico and Canada over the United States-Mexico-Canada Agreement, a trade pact seen by some lawmakers and economists as a much-needed improvement to the 1994 North American Free Trade Agreement.

“The President’s threat to impose tariffs on Mexico is a dangerous mistake that will have significant consequences to our economy,” he said. “To properly address the crisis at the southern border, we need to invest in our ports of entry, including increasing personnel, improving infrastructure, and advancing technology.”

Gov. Greg Abbott released a statement saying that the situation at the border has reached a “breaking point” and he put the blame on Congress.

“I’ve previously stated my opposition to tariffs due to the harm it would inflict on the Texas economy, and I remain opposed today,” Abbott said. “Nevertheless, the President is trying to address this emergency. Now, Congress must do its job and start passing laws to fix our broken immigration system.”

An aide to U.S. Sen. John Cornyn, R-Texas, added: “Senator Cornyn supports the President’s commitment to securing our border, but he opposes this across-the-board tariff which will disproportionately hurt Texas.”

U.S. Rep. Kevin Brady, R-The Woodlands, said he understands Trump’s frustrations, but added there is still time to work on a solution before the tariffs are implemented in 10 days.

“The President has made it clear that Mexico must do more to stop this crisis at the border which seemingly has no end, and he is serious about taking whatever actions are necessary to find a real lasting solution,” said Brady, the ranking member on the U.S. House Ways and Means Committee. “Mexico is a valued ally and the new tariffs are not yet in effect, so there is a window here for both countries to find common ground. It is in both of our interests to do so, economically and for stronger security.”

O’Neil said Mexican President Andres Lopez Obrador has already tried to meet some of Trump’s long-standing demands that Mexico do more to curb the flow of Central American migrants.

“He has deported as many people [in less than a year] as [former President] Enrique Peña Nieto did in his last year,” she said. “But the number of people coming has increased so that is the challenge. And with many fewer resources [than the United States].”

Abby Livingston and Patrick Svitek contributed reporting

Read related Tribune coverage

Author:  JULIÁN AGUILARThe Texas Tribune

Trump Administration Will Aid Farmers Hurt by Trade War. Some Texas Lawmakers Call it Welfare

The Trump administration on Tuesday announced up to $12 billion in emergency aid for farmers impacted by the president’s trade war — which came as welcome relief for Texas farmers who were afraid the tariffs would hurt their business. But some Texas lawmakers have criticized the move and called on the president to end the tariffs.

President Donald Trump issued a slew of tariffs on Chinese goods earlier this month, prompting China to respond with tariffs on $34 billion worth of U.S. goods. The Chinese tariffs threatened to deal a serious blow to Texas agriculture, which provides nearly half of U.S. cotton exports to China.

China purchased $16 billion worth of Texas goods in 2017, making it the third largest recipient of the state’s international exports.

The tariffs came as the U.S. agricultural sector was already in a state of decline, said Gene Hall, spokesman for the Texas Farm Bureau. Just before the tariffs went into effect, farm-related income was about half of its 2013 value, according to the U.S. Department of Agriculture.

“Our crop is poor, and then you put a poor price on top of that, and myself included and many of my neighbors, we’re going to struggle to make ends meet on our grain sorghum crop this year,” said Scott Frazier, a sorghum and cotton farmer south of Corpus Christi. “So for us any little bit of help to get past this trade war issue is going to be significant.”

Farmers will be able to sign up for the aid in September, and it will be funded by the Commodity Credit Corporation, a federal program that provides relief for farmers by buying their crops, often after natural disasters or other crises. This will be the first time the program has been used to alleviate the effects of a trade conflict.

Arlan Suderman, chief commodities economist at financial advising firm INTL FCStone, said the tariffs are unlikely to last long because China won’t be able to pay higher prices for U.S. goods indefinitely and alternative partners like Brazil won’t be able to keep up with Chinese demand.

Suderman said he believes the federal aid to farmers is politically motivated. Trump garnered wide support in rural areas and with the midterm elections less than four months away, he needs to shore up support from farmers harmed by the tariffs, he said.

Hall said the tariffs and the federal aid are only temporary measures as the administration tries to force China to the negotiating table to end what they call predatory practices — such as restrictions on allowing new U.S. commodities into the Chinese market.

Frazier said he and his neighbors will have a hard time paying their bills under the current tariffs. But he and Hall said Trump’s moves haven’t soured their opinion of the president, who revealed his protectionist stances during his campaign. Frazier said the aid package showed Trump’s commitment to helping U.S. agriculture.

But not everyone is so positive. Casey Guernsey, spokesman for Americans for Farmers and Families, said he would much rather see the administration makingbetter trade deals instead of launching tariffs, which he said have not been effective in the past.

“Ninety-five percent of the world’s consumers live outside the U.S. Those are our customers,” Guernsey said. “We don’t need aid from Washington to not only survive, but prosper.”

Trump’s $12 billion plan met with mixed reviews on Capitol Hill. U.S. Rep. Mike Conaway, a Midland Republican who chairs the U.S. House Agriculture Committee, defended the tariffs and the aid package.

“The president’s efforts to stand up on behalf of American producers and not allow the Chinese to use them as a weapon against us I think is the right thing to do,” he said. “It is the president’s attempt to try to not let China use our producers as leverage.”

But providing payments to farmers is not viable long-term, he added.

“Trade is the long-term solution. But in the meantime, we’ve got to have China agree to abide by their agreements they’ve agreed to, and that’s what this is all about,” he said.

Several Republican lawmakers from Texas who typically fall in line behind Trump spoke out against the plan — an indication that the tariffs are driving a wedge between the president and congressional allies from rural states.

U.S. Sen. Ted Cruz, R-Texas, denounced the financial assistance as “a mistake” on the Chad Hasty Radio Show. “The answer should not be government aid. It should be allowing farmers and ranchers to sell their goods,” he said.

The most biting rebuke came from U.S. Rep. Jeb Hensarling, R-Dallas, a staunch free market advocate who told CNBC he thinks Trump has overstepped his authority.

“I think that Donald Trump has too much power, and I think that Congress needs to reassert their authority,” he said. “And last I read the Constitution, it’s Congress that has authority over tariffs, it’s Congress that has authority over trade, and we ought to take some of that back.”

He added: “We have a policy now that is taxing the American consumer and then bailing out U.S. farmers with welfare. I don’t get it. I don’t agree with it.”

Trump fired back at critical lawmakers on Twitter Wednesday morning, calling them “weak.”

Disclosure: The Texas Farm Bureau has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune’s journalism. Find a complete list of them here.

Authors:  MATTHEW CHOI AND CLAIRE PARKER – The Texas Tribune

Administration Announces Aid to Help Farmers Hurt by Tariffs

Texas farmers and ranchers impacted by retaliatory tariffs welcomed the temporary relief measures announced Tuesday by the U.S. Department of Agriculture (USDA).

A robust trade market, however, is still the ultimate goal, according to the president of the state’s largest farm and ranch organization.

“This short-term funding will help farmers and ranchers who rely on export markets stay in business as the administration works to develop and obtain new markets,” Texas Farm Bureau President Russell Boening said.

USDA outlined $12 billion in relief funding for three programs to help farmers and ranchers hurt by market disruptions. The relief funding correlates to the estimated $11 billion impact current trade tensions have on U.S. agriculture.

The funding will be split between three USDA programs: Market Facilitation, Food Purchase and Distribution and Trade Promotion. The relief package is expected to be operational by September 3.

“We appreciate the administration and USDA taking this action to support American agriculture, but certainly, farmers and ranchers would rather sell their products to domestic and export markets through good trade relationships,” Boening said.

“We support the administration’s continued talks with our trading partners and look forward to both new and improved markets.”

“No Question, it’s Going to Hurt”: Trump Trade War with China Worries Texas Agriculture

There’s a Chinese proverb: Sow melons, reap melons. Sow beans, reap beans.

In other words, expect tit for tat.

President Donald Trump — and by extension many of the nation’s farmers — is seeing that lesson in action after he launched a bevy of tariffs against China on Friday, prompting the People’s Republic to retaliate with its own tariffs on imports from the United States. Among those American goods are some key Texas exports, including cotton, corn and sorghum. Some of the Chinese goods targeted in Trump’s tariffs are vital parts for Texas’ agriculture industry, such as livestock equipment.

“No question, it’s going to hurt,” said Gene Hall, a spokesperson for the Texas Farm Bureau.

Throughout his presidential campaign and since he was inaugurated, Trump has threatened to amp up protectionist measures on the world’s second-largest economy. It was a campaign issue that resonated with many Trump voters, including many Texas farmers.

“We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S.,” Trump tweeted in April. “Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!”

On Friday, the United States levied tariffs on $34 billion worth of Chinese goods. China responded with its own tariffs on $34 billion in U.S. exports.

The Chinese Ministry of Commerce called the United States a “typical trade bully” set on igniting the largest trade war in history and violating World Trade Organization agreements.

“Instead of serving the interests of U.S. companies and people, the move will prove to be counter-productive and damaging,” the Chinese commerce minister said in a statement.

For Texas farmers, the trade war plays havoc with their bottom line. Tens of billions of dollars of goods trade between China and Texas each year. Texas exported $42 billion in goods to the country in 2017, second only to Mexico.

Cotton is the state’s 10th largest export. Nearly half of the U.S. cotton exported to China comes from Texas. Soy is a smaller market for Texas but China is the state’s largest international soy customer. Texas exports about $157 million worth of corn a year, making it the 13th largest exporter of the crop in the country, though U.S. corn exports to China have dropped precipitously over the past few years due to increased regulations on the Chinese side.

Wesley Spurlock, a corn farmer in Stratford and chairman of the National Corn Growers Association, said the weeks of talk of a trade war had already hurt Texas farmers. The prices of corn and soy have both decreased by around 15 percent since mid-May. The price of cotton has decreased by over 11 percent since mid-June. Spurlock credits those declines with the threat of tariffs, a situation that could be exacerbated with their enactment.

Dee Vaughan, a corn and cotton farmer from the Panhandle, said even the threat of tariffs has caused shipping companies to be more hesitant buying his crop. Prices had already been low going into the spring, he said, though farmers were “cautiously optimistic” about this year’s revenues. But “simply because of the uncertainty, if nothing else, all the rhetoric that’s going on” for the past few months has been keeping farmers worried that they’ll be able to make fewer sales.

“You couldn’t pick a worse time for agriculture to be in a trade dispute,” said Hall, the Texas Farm Bureau spokesperson pointing to a 50 percent decline in agricultural income since 2013. He said the farm bureau always supports negotiating trade disputes over gratuitous tariffs — but that many farmers hope the president’s actions will force China, which has historically acted in ways that have harmed Texas agriculture, to the negotiating table.

“There is some patience in the agricultural community for what the president’s doing, but there is some angst as well,” Hall said.

As China’s middle class expands and demand for protein grows, soy has become essential in providing feed for the country’s growing beef industry, Spurlock said. China imports more than half of American soybeans, and the United States is the second-largest soy exporter to China, representing about 34 percent of the country’s soy imports. Spurlock fears the new tariffs will push Chinese consumers to look to other producers to get their soy, such as Brazil, which already accounts for more than half of all soy imports in China.

The tariffs will also make agricultural equipment more expensive, but Spurlock said those rising costs are more of an inconvenience than a damning new expense. Vaughan echoed that sentiment, saying he is more concerned about not being able to sell his crop than the rising cost of farm equipment since he doesn’t need to buy equipment very often.

Though the agriculture industry will face a bitter few months with rising costs and damaged competitiveness, Spurlock said he hopes the tariffs work to improve and smooth trade between the United States and China, whose byzantine bureaucracy makes penetrating the market slow and cumbersome. If the tariffs work to bring China to the table to expedite trade allowing corn to become a major export to China, Spurlock said the United States could become the world’s leading food producer.

But when asked if he is optimistic the tariffs will work, Spurlock said, “I have to be optimistic.”

Disclosure: The Texas Farm Bureau has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune’s journalism. Find a complete list of them here.

Author: MATTHEW CHOI – The Texas Tribune

Bordertown Undergroun Show 728
EPCON_2020 728
McDonalds BBall 2019 728
EP MediaFest 2020 728
Mountains 728
Rhinos 2019/2020 728
West Texas Test Drive 728
STEP 728
Rugby Coming Soon 728
High Desert 728
ENTERPRISE 728
Darrington Park 728
Amy’s Astronomy
Utep Football Generic 728