War on American Farmers Will Continue Until The Morale Improves

Farmers across the US are caught between the 25 percent tariffs that the Republican Administration has imposed on imported raw materials such as steel and aluminum and the retaliatory tariffs that China and other countries have imposed on major American agricultural exports – namely soybeans and corn.  For our farmers and ranchers this has resulted in a perfect double-edged sword of increased costs for machinery, farm equipment, spare parts and plunging commodity prices.  Negotiators for the Administration and China have been trying to reach a new trade deal – however talks are unlikely to be concluded until after planting time at the very earliest.       

In the meantime President Trump said Wednesday (yesterday) that his administration was discussing leaving in place tariffs on Chinese goods for a ‘substantial period of time.’   Speaking to reporters as he left Washington for Ohio, Mr. Trump said he was not considering removing tariffs on China and that the U.S. was taking in ‘billions and billions’ from tariffs.  'For a period of time, that will stay,' he said.       

You’re probably thinking:  Do people really believe that the Chinese are paying these tariffs?  To which I would suggest:  Yup!  There is an exceedingly high probability that Trump supporters believe each and every untruth.  Don't take my word for it - Google PT Barnum.  Nonetheless, what matters is that we know the truth.  US consumers pay the taxes imposed by the Republicans.  As evidence of this great truth large agricultural equipment manufacturers such as John Deere and Caterpillar raised their prices immediately after the Republican tariffs were announced so that they could adjust for the higher price of steel and aluminum imports.  Oh, it’s not just big ticket items either – in Montana the cost of a horse-trailer is now 20 percent higher as a consequence of the tariffs Republican tax increase.         

Suppose you are not a farmer and instead are a member of the investor class; take heed to note this kind of stuff.  Last month Bank of America Merrill Lynch downgraded John Deere’s stock citing 'a real risk to farm equipment demand' if the trade war continues. 

I digress.       

Farmers in the United States are continuing to be clobbered by this Republican administration with a record number having to file bankruptcy thanks to spiraling costs and falling revenues from Trump’s trade wars.  These farmers also happen to be mainstays of Trump Country.  And if he continues to squeeze them financially you have to wonder how this will contribute to reelection in 2020.        

I wish to advance a wild-ass piece of wishful thinking.  Faced with a growing list of petty grievances – and citing ‘family business demands’ - perhaps maybe Trump will announce he’s not running for reelection.  Being president is hard work after all.     

Always hopeful….