China hits U.S. farmers with 15% tariff. When farmers don't make money, it 'directly ripples across the rural economy.'

Tariffs could permanently hurt U.S. farm income.
(Adobe Stock photo)

In the escalating U.S.-China trade dispute, China has issued retaliatory tariffs targeting American farm goods. "Beijing imposed the levies in response to President Trump's extra 10% blanket tariff on Chinese goods," reports Megan Cerullo of CBS News. "Under China's retaliatory action, U.S. farmers now face levies of 15% on chicken, wheat and corn, and 10% on soybeans, pork, beef and fruit."

In the immediate future, the tariffs will cost American farmers money from lost sales. In the long-term, the tariffs could do U.S. farm product sales greater harm because some vendors may decide to permanently purchase meat and fruit from other producers. Cerullo explains, "If prices of foreign-grown goods rise in China, locals will turn to less expensive alternatives either from China or other countries. American farmers that deal in chicken and more will likely lose market share as a result."

Alongside tariffs doled out by both countries, the inconsistent tariff announcements by the Trump administration have left farmers feeling like their livelihoods are on shifting sands. Virginia-based farmer John Boyd Jr., president of the National Black Farmers Association, told Cerullo, "You are really shaking at the root of all the major commodities that we produce in the U.S. because we are a market-driven industry."

Even though U.S. farmers may have "anticipated Trump would impose levies on key U.S. trade partners, there wasn't a whole lot the farmers could do to prepare," Cerullo adds. Nick Levendofsky, executive director of the Kansas Farmers Union, told Cerullo, "This trade war and these tariffs adds to that very stressful time and does not help the farm economy. When farmers aren't making money, they are not spending money, and that directly ripples across the rural economy."