American farmers face difficulties due to US-China trade fluctuations

Although the process of narrowing the disagreement is still being promoted, it is undeniable that the recent fluctuations in trade between the two largest economies in the world are having a significant impact on many economic activities. American farmers are one of the groups most affected by this issue.

Soybeans are nearing harvest at Travis’s farm in Maryland. But a bumper crop could be a burden this year, with a dearth of large orders from China. China has long been the top buyer, accounting for more than half of U.S. soybean exports last year. But that has changed this year as tensions have risen and the two countries have traded tariffs. Since the U.S. announced reciprocal tariffs in April, Chinese buyers have postponed new soybean orders for the fall harvest in the U.S. Soybean market has been cut off. With no buyers, soybean prices have fallen sharply.

Mr. Travis Hutchison - Farm owner, Maryland state said: "In recent months, soybean prices have dropped a few dollars per bushel. Low purchasing prices have made it very difficult for us, because input costs, machinery and spare parts costs are very high, and profits are also affected."

Not only did China suspend purchases, it also imposed a 20% retaliatory tariff on US soybeans, making this commodity less competitive than soybeans from South American countries such as Argentina and Brazil.

To ease the impact of the current difficulties, the administration of US President Donald Trump is proposing a support package for American farmers worth between 10 and 15 billion USD, part of which is taken from increased tariff revenue. However, this is still considered only a temporary solution.

"I'm glad Mr. Trump is thinking about our challenges, but these are clearly short-term measures," said Travis Hutchison, a farm owner in Maryland. "As long-term farmers , we want the situation to be resolved in a way that benefits all parties and preserves our long-term partnership."

Farmers like Travis are among the top groups of voters who support President Trump. However, during both of his terms, they have been heavily affected by trade tensions between the US and China. They are hoping that the recent disagreements will soon be resolved, helping them stabilize production and business as well as restore large orders like in previous years.

Source: https://vtv.vn/nong-dan-my-gap-kho-do-bien-dong-thuong-mai-my-trung-100251014171859502.htm