Soybean Farmers and Tariffs

Abstract

The Trump administration aggressively pursued trade policies that limited imports from foreign countries, especially China. Tariffs targeted at imported steel, aluminum, and many other final and intermediate products, were adopted in an attempt to protect domestic industries, national security, as well as eliminate the impact of “unreasonable” and “burdensome” foreign policies. The policies led to Chinese retaliatory tariffs, including 25 percent tariffs on U.S. produced soybeans. These tariffs, both U.S. and Chinese, affected the profitability of soybean farmers in the upper Midwest, who saw prices of inputs increase while demand and price for soybeans fell drastically. Five soybean farmers, representing thousands of other farmers, are now forced to reconsider their planting decisions going forward.