While President Visits Elko, Trade War Continues to Hurt Nevada Families

QUOTE FROM TARIFFS HURT THE HEARTLAND SPOKESPERSON BRIAN KUEHL: “With a large agriculture industry that supports the state’s rural economy and an important advanced manufacturing base, the trade war is hitting Nevada where it hurts most. The pain will only continue as tariffs take an effect on everyday necessities, driving up prices for the items that Nevadans buy most. Tariffs are taxes that hurt everyone, including families, workers, farmers, ranchers, manufacturers, and retailers. As the trade war keeps escalating, communities like Elko will continue to suffer.”

TARIFFS ARE PART OF ‘PERFECT STORM’ SLAMMING NEVADA FARMS. “A wall of surplus beef, Donald Trump’s trade wars, and a drop in demand for milk and cheese threaten profits for Nevada’s $1 billion farming and ranching industries. … ‘We’re stable for now but it’s like a perfect storm,’ [Nevada Dairymen manager Libby] Lovig says of the tariffs, reduction in demand and accompanying price drops that threaten Nevada’s $170 million dairy industry. … [Nevada Farm Bureau Executive Vice President Doug] Busselman says much of the milk produced in Nevada goes through a Dairy Farmers of America processing plant in Fallon, where it’s turned into powdered milk that fetches a premium on the export market. ‘With the trade war going on with China, they’ve also been affected there. It’s not competitive for it to be sold so it’s going to other places for other uses instead of the price they were expecting to get shipping to China,’ he says.” (Dana Gentry, “Trump Tariffs Strengthen ‘Perfect Storm’ Slamming Nevada Farms,” Nevada Current, 9/11/18)

TRADE WAR BRINGS HIGHER COSTS FOR NEVADA HOMEBUILDERS. “Las Vegas homebuilders are fetching rapid sales and record prices, a new report shows, but President Donald Trump’s tariffs are inflating construction costs amid heightened affordability concerns. … His levies on imported lumber, steel and aluminum have sparked concerns that the higher costs will slow development and push up prices for buyers and renters. The Trump administration’s 20-percent tariffs on imported Canadian softwood lumber, for instance, ‘are needlessly increasing lumber prices’ and ‘making housing less affordable for American families,’ according to the National Association of Home Builders.” (Eli Segall, “Trump Tariffs Raising Costs for Las Vegas Homebuilders,” Las Vegas Review-Journal, 9/26/18)

MINING INDUSTRY EXPERT: ‘LOOKS LIKE A COST INCREASE FOR US.’ “However, the major impact I see for mining is that we are major consumers of finished steel and aluminum products and, in general, consumers bear the brunt of cost increases in manufactured goods driven by a price increase of input materials. … To me it looks like a cost increase for us. Hard to say how big or for how long, but these tariffs will not help the mining industry and could put a significant dampener on expansion.” (Dan Taylor, “Trade War. What’s It Good For?” Elko Daily Free Press, 9/20/18)

NEVADA LIKELY TO GET HIT HARDER BY TARIFFS THAN OTHER STATES. “Then there’s Nevada. The steel tariffs have already prompted concerns here over their effect on the price of steel for buildings and infrastructure projects, but as Trump threatens to tax every product coming from China, the effect in Nevada could be worse than in other states. Nevada is among 23 states for whom China is the largest trade partner.” (Editorial, “Casualties of Trump’s Trade War Have Been American Businesses,” Las Vegas Sun, 8/13/18)

TESLA ANNOUNCED NEW FACTORY IN CHINA THANKS TO SPIKE IN PRICE OF AMERICAN-BUILT CARS. “Tesla announced plans Tuesday to build a new factory in Shanghai that’s expected to make 500,000 electric vehicles annually within about five years. But the long-expected expansion abroad can’t come a moment too soon for Tesla, which is getting hit hard by increased Chinese vehicle tariffs imposed on imported vehicles. Tesla raised prices on cars in China after the trade dispute between President Donald Trump and China prompted the tariff hike from 25 percent to 40 percent. Manufacturing the vehicles in China would exempt them from those tariffs.” (Nathan Bomey, “Tesla to Build Factory in China as Tariffs Bring Urgency,” USA Today, 7/10/18)

NEVADA BUSINESSES HAVE BEEN FEELING STING OF TRADE WAR FOR MONTHS. “From the cost of raw materials used by various industries in the state to more than $107 million in exports threatened by tariffs, the burgeoning trade war is making its mark on a wide range of Nevada businesses. These include the state’s steel fabricators, who have seen the price of the material surge throughout the year. Even before new tariffs went into effect, steel costs started seeing a steady increase earlier this year as the Trump administration signaled its trade plans, said Justin Ivory, president of A-1 Steel in Sparks. ‘Depending on which item it is, we’re seeing an increase anywhere from 25 percent to 40 percent,’ Ivory said.” (Jason Hidalgo, “Escalating Tariff War Starting to Impact Nevada Businesses,” Reno Gazette Journal, 7/9/18)

TRADE SUPPORTS ALMOST 368,000 NEVADA JOBS. “About $75 billion worth of total exports from the U.S. are subject to retaliatory tariffs, with $107 million of that coming from Nevada, according to an analysis released Monday by the U.S. Chamber of Commerce. In Nevada, a variety of exports— including breads, playing cards and steel — are threatened. About 367,800 Nevada jobs are supported by trade, according to the Chamber.” (Bailey Schulz, “$107M of Nevada Exports Threatened By Retaliatory Tariffs,” Las Vegas Review-Journal, 7/2/18)