Will Tariffs Finally Be Lifted in 2020?
In early 2018, the U.S and China became engaged in a long-running trade war. Since then, industries have struggled to cope with the new economic realities that have been imposed by the multiplying tariffs.
Farmers in the US agricultural industry have been hit particularly hard. Prior to 2018, China was the biggest market for several US-grown agricultural products, including soybeans and cotton. Since the onset of the trade war, farmers whose incomes are based on these crops have been severely affected. Now, in early 2020, there’s some promising signs that the tariffs might be lifted in the foreseeable future.
Are you concerned about how the trade war might continue to impact your industry or business? If so, securing an agriculture farm credit is a great way to protect your property’s future financial security. In this article, we’ll break down the future of the trade war and the benefits of an agricultural farm credit.
Could 2020 Mark the End of the Trade War?
Earlier this year (January 15), President Trump met with Chinese government officials to sign “phase one” of a new trade deal. The deal is intended to end the trade war which has affected both sides for more than two years. “Phase one” stipulates that China will buy $200 billion worth of US-grown agricultural goods over the next two years. That’s more than they spent in 2017 (roughly $185 billion), before the trade war began.
How Will Farmers Be Affected by Phase One of the New Trade Deal?
Leaders in government and agriculture are enthusiastic about the deal’s ability to revive industries that were hurt by the tariffs. Of course, it isn’t totally clear how the agricultural industry will look in 2022, after phase one is complete. This is doubly true now that the entire global economy stands poised on the brink of a recession. Still, there’s no denying the fact that this is an important step towards rebuilding the crippled US agricultural industry.
Protect Your Farm’s Financial Security
The future of the trade war remains uncertain. With that in mind, the best thing that farmers can do is take precautions to keep their property protected. By securing an agricultural farm credit with MSF Agriculture, you can take your future into your own hands. Contact one of our expert lenders today to get started!