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Putting a dollar figure on trade disputes

Iowa State University Extension economist Chad Hart is among many in agriculture attempting to put a dollar figure on the impact of trade disruptions.

“You’re accumulating literally hundreds of millions if not billions of dollars-worth of potential losses as we play out through these trade negotiations and disputes.”

Looking at the impact of Chinese tariff retaliation on the soybean market, Hart tells Brownfield values have fallen 12 to 15 percent the last two weeks.

“Across a state like Iowa, you’re talking about hundreds of millions of dollars being lost there IF these tariffs remain in place.”

He says other commodities aren’t immune as trade tensions increase.

“Corn has taken a step back.  We definitely saw pork prices take a a step back (as well) when tariffs went in on that market.”

With commodities eventually having to move, Hart says potential losses become realized the longer the tariff structure remains in place.