In US-China Trade War, Voters In Rural America Are Suffering The Most

One thing is clear: Beijing knows America, and how to hurt Trump, a lot better than the other way around

  • Midwest and plains farm states hit hardest by Chinese tariffs, as China seeks to target Trump supporters
  • Illinois suffered most, with its exports to China falling 33 per cent last year, while exports from Minnesota were also badly hit

Across rural America, voters turned out in their droves for US President Donald Trump in 2016, but a new study has found that agricultural states are taking the heaviest blows from the US-China trade war.

Research from the US-China Business Council (USCBC), a member organisation for American companies doing business in China, found that Midwestern states and those situated along the Great Plains, the vast expanses of flat lands and prairies that covers swathes of the United States, have suffered most due to their reliance on agricultural goods, such as soybeans, which were heavily targeted by China’s retaliatory tariffs.

Of all US states, Illinois suffered the most last year. Its total exports to China fell 32.8 per cent to US$3.8 billion in 2018, from a year earlier. Exports to China from Minnesota were also badly hit, plummeting 18.5 per cent to US$2.5 billion in 2018.

The trade war’s impact on farm states is partly by design, with Beijing aiming tariffs on states with high concentrations of support for Trump. Many Midwestern and farm states, home to the hollowed out economies of Appalachia and the rust belt, voted for Trump in the 2016 election.

The world’s two largest economies have been engaged in a tit-for-tat trade war since last July, slapping tariffs on hundreds of billions of dollars worth of products.

An estimated 85 per cent of US goods exports to China, including most agricultural products, were hit by trade tariffs, imposed by Beijing in retaliation for Trump’s tariffs on Chinese exports.

Total US goods exports to China fell to US$118.9 billion last year, down 7 per cent from an all-time high of US$127.9 billion in 2017.

China is the US’ third largest export market, after Mexico and Canada. Its basket of exports come from a wide range of industries, as well as agricultural goods, including transport equipment, semiconductors, and oil and gas. Those exports sustained logistics jobs in America’s ports and throughout the country’s transport system, the US-China Business Council (USCBC) said.

The trade war has driven down both export value and volume. In 2017, 30 states each exported more than US$1 billion in goods to China. In 2018, meanwhile, that number fell to 26. Some 34 states exported fewer goods to China in 2018 than they did in 2017, and another four states had only single-digit growth.

Despite the ongoing trade tensions between US and China, exports to China remain integral to the US economy, supporting more than 1.1 million jobs in the country, according to the trade group.

However, not all the states suffered as a result of the trade war. Oregon, saw its total exports to the world’s second largest economy rise to US$4.6 billion last year, up 22.1 per cent from 2017. That total included US$2.5 billion worth of semiconductors and components.

The USCBC expects US services exports, which experienced a slower rate of growth in 2017, to remain relatively robust, as they were not affected by trade tariffs.

The two countries have been in talks to end the trade war, with another round of negotiations between US and Chinese officials finishing in Beijing on Wednesday, led by Chinese Vice-Premier Liu He, US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin.

Before the start of the talks, Chinese and US officials said significant progress had been made in the negotiations, with many expecting a deal to be completed in the coming weeks.

Source: South China Morning Post

  1. […] One thing is clear: Beijing knows America, and how to hurt Trump, a lot better than the other way ar… […]

  2. silver749 says

    What the US is trying to force China to swallow and can’t is that the US and only the US wants all the say on justice procedures for any non compliance with the deal. Any normal person would find that difficult if not 100% impossible.

  3. JustPassingThrough says

    anyone looking at the midwest weather map these days?
    the mississipi (sp) river is at record levels.
    everything is under water.
    export of soybeans and other grains is moot.

    however there is record gdp growth, record jobs (for high school dropouts and low income folks).
    the first liar doesn’t stand a chance.

  4. Garry Compton says

    Good article Thanks. Well, most of the Construction industry and all their suppliers were taken out in 2007 -08 … so now its the Farm Industries turn – the way I see it. Monsanto/Bayer, Cargill, John Deere, and the rest of the Agri- Globalist have been busy planting from South America to Ukraine’s breadbasket so I’m sure they will be the winners in the near future. Trump’s Presidency just took him from N Y Mafia to Globalist Mafia , which means he is filling pockets and will be – for a long time – President or not. A question I have – Were the farmers in the Mid West growing GMO or GMO/free crops ?

    1. DarkEyes says

      Farmers mean for the US clowns in D.C. real freedom and that is not allowed in their strategy and plans for North America.
      Farmers are dangerous, they have an opinion, they are free individuals and not easy to handle for the Banksters.
      Therefore IMO a bit geoengineering (rain,rain,rain with floods) and starve them out because there will be no harvests. There you go!

      1. Garry Compton says

        Yep, I believe that the US/NWO are using weather and climate weapons against the people of the USA and on other countries.Just like Obama’s propaganda laws – ” We can now, legally use propaganda Against the citizens of the USA” – signed in 2013. I’m waiting for Trumps new Laws that will say ” We can now legally use weather/climate weapons , Against the people of the USA”.

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