Donivan Bullins | [email protected]

President Donald Trump has imposed a 10% tariff on all goods imported from China. This tariff went into effect on March 4, along with 25% tariffs on Mexico and Canada. 

These tariffs place a duty on all imports and could increase your already expensive grocery bill. However, even more concerning for Kansas farmers are the potential impacts of the Chinese counter-tariffs on agricultural products. 

“It’s already driving prices down, the fears of it. Now, this is a short run thing, but we are seeing, you know, oh my gosh, markets down significantly,” Mark Nelson, Kansas Farm Bureau’s Director of Commodities, said. “Hard wheat futures are down 18 cents today, corn is down 13, soybeans are down almost 19.”

Since the announcement of tariffs on China, the Chinese government has countered with a 10-15% tariff on U.S. agricultural products, namely wheat and soy. Tariffs aren’t a new occurrence in Trump’s foreign policy. 

“I think President Trump has been obsessed with using tariffs as an instrument of statecraft since the 1980s. He’s been a strong advocate of tariffs.” Professor Jack Zhang, Director of the KU Trade War Lab, said. “There was a trade war in the 80s against Japan, and he believes that tariffs are going to help revitalize American manufacturing, balance the trade deficit, and generally do good things for U.S. manufacturing.”

Trump struggled with a similar trade war in 2018, facing tariffs on soy. Since that trade war, China has diverted its source of goods away from the U.S. to other countries like Brazil. 

If this trade war continues, expect to see higher prices in the grocery store and lower revenue streams for Kansas farmers.