It seems like these days when we go to sleep the state of international trade might be one thing, but by the time we wake up the next morning, there’s no telling what’s happening. Since taking office, there’s no doubt President Donald Trump has been active in international markets, which impacts agriculture in Tennessee and the U.S. immensely.
No matter what side of the aisle you fall on, if you’re a farmer or someone involved in agriculture, it’s important to be informed about what some of these decisions mean for our most important industry.
An expert when it comes to international trade, University of Tennessee Institute of Agriculture Professor Dr. Andrew Muhammad, says, “I am concerned, because the one thing about international trade is there’s certainty and a consistency that businesses have come to expect. Even if the tariffs are temporary, once you throw in a certain amount of uncertainty and inconsistency, it really disrupts trade.”
That means it disrupts trade for farmers right here in the Volunteer State, especially soybean and cotton farmers. Those folks see as much as half, or three quarters of their crops headed to export markets.
“When you think about the commodities we produce where anywhere from 40-50% up to 80% goes to foreign countries, and then we find ourselves competing with agricultural powerhouses like Brazil, there are serious impacts on the U.S.,” said Dr. Muhammad.
Many farmers are understanding of the reason behind the tariffs, but as Dr. Muhammad says, it all comes with a cost.
“Tariffs tend to stick around longer than they plan. Even if they are temporary, we will end up paying for them,” said Dr. Muhammad. “The hope is that the alternative goals with these tariffs outweigh the actual cost of them, but lest not forget they do come with a cost.”
U.S. Secretary of Agriculture Brooke Rollins has recently spoken a lot about tariffs, urging farmers to be patient as the Administration works as she says, “to realign the American economy around putting America first.”
Rollins adds, “This isn’t just about the tariff, it’s about how our products are unfairly treated around the world. We are going to put America first; not China, not India, not beef from Argentina, not dairy products from Canada – but America first.”
Time will most certainly tell, but as farmers start a new planting season with a difficult farm economy, the hope across Tennessee and the country is that farmers are top of mind when decisions like this are happening.
