There is no doubt that tariff back and forth is causing challenges for agriculture and the overall U.S. economy. The rationale of the administration is that U.S. trade has worked at a big deficit for years. Ted McKinney, CEO of the National Association of State Departments of Agriculture, says the imbalance has to be rectified.
“We have to start, notwithstanding the frustrations with tariffs and the frustrations across the board, I can tell you unequivocally, trade has not been fair to the U.S. Now, we don’t want to go cry about it, but at some point somebody has to put their foot down, and the President did in his first term. He’s doing it again now to say ‘enough.’ And by the way, we’re not seeking unfair trade that’s overly beneficial to us. We just want fair trade. So, that’s starting with a country putting a piece of paper on the desk of the U.S. trade rep, Jameson Greer, a terrific, upstanding, highly ethical guy who knows ag pretty well. He has been insistent that it include ag, which oftentimes countries try to avoid, and it must include non-tariff trade barriers, including ag.”
McKinney was the USDA Undersecretary for Trade and Foreign Agricultural Affairs during the first Trump administration. McKinney says the bumpy ride between now and more balanced trade will be a challenge.
“Clearly, negotiations cannot be a highly public thing. So, if they come forward, as we hope they are, and they will, then I think we’re going to be better off recognizing that we’re having this bumpy period, there’s no doubt, and the President told us that. We hope to get past this. I hear that negotiations are occurring with China. We want some element of that market. I think we can get there, but it’s all under wraps, and so hang on, and then we can talk again.”