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Peel says trade impacts, direct and hidden, will grow

Trade impacts will become bigger and hidden impacts will rise if trade issues continue, according to a beef marketing specialist. Derrell Peel, with Oklahoma State University Extension, tells Brownfield Ag News,

“Projections for U.S. macroeconomic growth in 2019 have been reduced as a result of the continuing trade war and even the global economy is a little bit vulnerable at this point to continuations in these types of impacts.”

Peel says U.S. beef has been somewhat insulated with respect to trade issues – since it was just beginning to ship beef to China at the start of the trade war. But, he tells Brownfield, there is reason to be concerned, “If the tariff becomes part of what significantly reduces growth potential in the U.S. economy or the global economy, or both, then it could come back to impact the beef market indirectly through the demand side rather than being a direct trade impact.”

And Peel says there are lost opportunities that are less obvious during trade wars, beyond the direct impacts, which will likely continue and grow.

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