Tariffs Threaten to Slash Farm Income as Ohio Is Set to Become ‘Unique Casualty’ of the Trade War

President Trump’s Trade War Has a $3.3 Billion Price Tag in Ohio

QUOTE FROM BRIAN KUEHL, EXECUTIVE DIRECTOR, FARMERS FOR FREE TRADE: “Tariffs threaten every corner of Ohio’s farming and manufacturing base. Income will plummet, jobs are threatened, and foreign competitors are already capturing hard-fought space in export markets. Ohio’s farmers and manufacturers are worried about being driven out of business but Washington has brushed them off as a ‘rounding error.’ Ohio’s farmers, manufacturers and workers need the President to reverse course on tariffs before they cause any more damage.”

NEW DATA FINDS OHIO BUSINESSES AND CONSUMERS SHOULDERING HIGHER COSTS BECAUSE OF THE TARIFFS. “The steel and aluminum tariffs have had significant cost implications for the states. The section 232 steel tariffs have cost American companies an additional $1.5 billion, including $475 million in August. Previously, these products were duty free. Imports into these states paid the most taxes for steel subject to the section 232 tariffs: Texas ($389 million), Michigan ($139 million), California ($104 million), Illinois ($103 million), Pennsylvania ($98 million) and Ohio ($77 million).” (“Many states shouldering hundreds of millions of dollars each in higher costs; Hardest hit states include Texas, California, Michigan, Illinois, and Pennsylvania,” Tariffs Hurt the Heartland, 10/11/18)

‘THE AGRICULTURAL MARKETPLACE IS ON PAUSE AT SOME LEVELS TO SEE WHAT HAPPENS WITH THESE TRADE WARS’: “Sean Dorsey, founder and CEO of Cleveland investment bank League Park Advisors, was working on a deal involving the purchase of a farm equipment seller before the effects of the tariff-driven trade war with China began to materialize. Major equipment sales have dialed back lately, Dorsey said, because of a slowdown in projected revenue growth for businesses that consume steel — like machinery manufacturers — in the wake of higher input costs, which are a function of the tariffs imposed under President Donald Trump. ‘In the farm world, the agricultural marketplace is on pause at some levels to see what happens with these trade wars,’ Dorsey said. It’s a regional example of how the trade war is beginning to show some tangential effects in the business world. (“Simmering U.S.-China Trade War Is Bearing Down On M&A Sector,” Crain’s Cleveland Business, 9/16/18)

HUNDREDS OF COMPANY AND INDUSTRY REPRESENTATIVES TESTIFIED BEFORE TRADE OFFICIAL IN WASHINGTON:  “‘The proposed tariffs would unintentionally amount to a Made in America tax on sewing and crafting projects completed by Americans. As a result, there will be an incentive to move production and jobs away from the United States,’ said Jill Soltau from Jo-Ann Stores in Hudson, Ohio.” (“Dozens of Retailers Testified About How Trump’s Trade War With China Could Impact Them – Here’s What They Said,” Markets Insider, 9/13/18)

AMERICANS FOR FREE TRADE AND FARMERS FOR FREE TRADE’S NEW JOINT CAMPAIGN WILL HIGHLIGHT COMPANIES SUCH AS CEDAR ELECTRONICS:  “The company would not have brought some of its manufacturing jobs from the Philippines to its facility in West Chester, Ohio, had it known that needed components from China would be targeted for duties, President and Chief Executive Officer Chris Cowger said. Cowger said the company may have no choice but to pass on higher costs from the duties to consumers and is forced to spend time, energy and money addressing the disruption caused by the tariffs instead of developing new products. ‘I’m beyond frustrated,’ Cowger said. ‘I should be spending my time on making this company great.’” (“Trump Duties Spur Industry Campaign to De-Escalate Trade War,” Bloomberg, 9/12/18)

QUOTE FROM JOHN HEISDORFFER, PRESIDENT OF THE AMERICAN SOYBEAN ASSOCIATION:  “If the trade war is over by the first of the year, people will say it has been a tough stretch but we made it through. But if it goes on a year or more, it will be tough on farmers. They will vote with their pocketbooks.” (“Trump’s Relationship With American Farmers Is Soiled Because Of Biofuels Stance And Trade War,” Forbes, 9/10/18)

SOYBEAN FARMERS STAND TO GET THE BIGGEST SHARE OF NEARLY $4.7 BILLION IN PAYMENTS IN THE MARKET FACILITATION PROGRAM: “‘We always knew that agriculture would be the tip of the spear if other nations decided to retaliate,’ said USDA Secretary Sonny Perdue in a conference call with reporters Monday. ‘We also knew the economic pressure was already there for farmers, even without these unfair trade tariffs.’ Soybeans have been hard hit by Chinese tariffs and stand to get up to $3.6 billion in assistance under the Market Facilitation Program.” (“Trump Is Giving Farmers A $6 Billion Bailout So They Can Weather His Trade War,” CNBC, 8/27/18)

MONICA XIA, CHAIR OF THE GREATER COLUMBUS CHINESE CHAMBER OF COMMERCE, SAYS SOME OHIO BUSINESSES LOOK TO HUBEI, CHINA, FOR ADVANCEMENT IN MEDICINE AND BIOTECHNOLOGY: “‘I think globalization cannot be stopped. I think that’s the message that we want our audience to take away,’ Xia says. ‘Just let’s contribute positively to this globalization trend.’ Hubei, China, and Ohio have been sister provinces for almost 40 years. Both of Ohio’s U.S. senators, and Gov. John Kasich, have raised concerns about the Trump administration’s trade policies. Ohio’s agricultural industry has been particularly hard hit by Chinese retaliation against soybeans and pork, though Trump has tried to offset some damages to farmers with subsidies. Ohio exports $4 billion in agricultural goods to China every year.” (“Chinese Officials Discuss Trade With Ohio Business Leaders,” WVXU, 8/23/18)

7,000 PEOPLE OUT OF WORK IN LORDSTOWN, OHIO, WHERE GM IS CLOSING TWO PRODUCTION LINES: “‘These companies are taking tax breaks with one hand and handing out pink slips with the other,’ Robert Martinez Jr., the president of the International Association of Machinists and Aerospace Workers, told USA Today. ‘I’m going to call it like I see it … this is a corporate ambush on working people.’ It’s a refrain repeated in places like Lordstown, Ohio, where GM is closing two production lines, putting some 7,000 people out of work. Yet some union members themselves are complicit in those ambushes. Mr. Trump’s promise to keep or restore jobs in America played well in blue-collar states such as Ohio and Wisconsin, which he won by fewer than 23,000 votes.” (“Trump’s Silly War With Harley-Davidson,” The New York Times, 8/19/18)

WATCH: ‘I HAVE TO TELL YOU, MR. PRESIDENT. THIS HURTS. THIS IS HURTING OUR LONG-TERM FUTURE. THIS IS HURTING ME.’

A Farmer on Trump’s Trade War: I Can’t ‘Take It’

THE TRADE WAR COULD COST OHIO $3.3 BILLION IN EXPORTS. “This isn’t the sort of list that states want to top. Too bad for Ohio, which is seventh out of the 50 states, with $3.3 billion in exports to Canada, China, Mexico and Europe that are affected by the new tariffs. It’s about what would be expected in a state that is home to 25 Fortune 500 companies — fifth most in the country — and has a large manufacturing sector.” (JD Malone & Mark Williams, “Ohio Lands at No. 7 of States Hardest Hit By Tariffs,” Norwalk Reflector, 7/25/18)

OHIO IS ‘UNIQUELY POSITIONED TO BE A CASUALTY’ OF THE TRADE WAR. “If a trade war erupts between the United States and Canada, Ohio is uniquely positioned to be a casualty. Canada accounts for about 38 percent of the state’s export market, with Ohio sending Canada nearly $19 billion worth of imports last year — everything from auto parts to furniture to soap.” (Jessica Wehrman, “Trade War with Canada Could Punish Ohio,” Dayton Daily News, 7/11/18)

EVERY CORNER OF OHIO’S MANUFACTURING BASE IS HURT BY TARIFFS. “Now, in the aftermath of the Trump administration’s May 31 announcement that it would slap tariffs of 25 percent on steel and 10 percent on aluminum from Canada, Canadian Prime Minister Justin Trudeau has vowed to strike back hard. Almost immediately, Canada released its own list of retaliatory tariffs, and not just on steel and aluminum. Also included were household products ranging from shaving cream to toilet paper to inflatable boats.” (Jessica Wehrman, “Trade War with Canada Could Punish Ohio,” Dayton Daily News, 7/11/18)

  • “The impact on Ohio is a reflection of what gets made here, and it’s not a small list. Consider this:

o   Yogurt? Dannon, in Minster, makes it.

o   Strawberry jam? Smuckers, pride of Orrville, manufactures it.

o   Shaving cream? The Barbasol brand is made in Ashland.

o   Parts for washers and dryers? Whirlpool, with locations in Ottowa, Greenville and Clyde.

o   Cars? Hondas are made in Marysville, and Chevy Cruzes in Lordstown.” (Jessica Wehrman, “Trade War with Canada Could Punish Ohio,” Dayton Daily News, 7/11/18)

OHIO STATE SAYS FARMERS COULD LOSE ALMOST 60% OF ANNUAL INCOME. “An Ohio farmer could lose more than half of his or her annual net income if the threatened 25 percent tariff is imposed on U.S. soybeans and corn in China, a study from The Ohio State University has found. … Researchers with the College of Food, Agricultural, and Environmental Sciences (CFAES) have projected a 59 percent loss in annual net farm income based on historical trends in yields on corn and soybeans and projections for price drops in both commodities.” (Ohio State University College of Food, Agriculture, and Environmental Sciences, Press Release, 6/12/18)

PRICES FOR CROPS AFFECTED BY TARIFFS HAVE DROPPED BELOW ‘BREAK EVEN POINT.’ “The price for a bushel of soybeans sank 14 percent in June and as of Friday had fallen to $8.40 a bushel on the Chicago Board of Trade, with the soybean futures market tumbling down in anticipation of the 25 percent tariffs on U.S. soybean imports. That’s below the break even price for producing soybeans, which is about $9.70 a bushel, said Sam Custer, Darke County OSU Extension educator. ‘If they don’t have soybeans sold ahead of time and if the market doesn’t come back up, you’re looking at being a dollar and a half under production cost on every bushel they produce,’ Custer said.” (Kaitlin Schroeder, “China Tariffs Sink Prices for Ohio Soybean Farmers,” Dayton Daily News, 7/6/18)

1.5 MILLION OHIO JOBS DEPEND ON INTERNATIONAL TRADE. (U.S. Chamber of Commerce)

A Farmer on Trump’s Trade War: I Can’t ‘Take It’

THE TRADE WAR COULD COST OHIO $3.3 BILLION IN EXPORTS. “This isn’t the sort of list that states want to top. Too bad for Ohio, which is seventh out of the 50 states, with $3.3 billion in exports to Canada, China, Mexico and Europe that are affected by the new tariffs. It’s about what would be expected in a state that is home to 25 Fortune 500 companies — fifth most in the country — and has a large manufacturing sector.” (JD Malone & Mark Williams, “Ohio Lands at No. 7 of States Hardest Hit By Tariffs,” Norwalk Reflector, 7/25/18)

OHIO IS ‘UNIQUELY POSITIONED TO BE A CASUALTY’ OF THE TRADE WAR. “If a trade war erupts between the United States and Canada, Ohio is uniquely positioned to be a casualty. Canada accounts for about 38 percent of the state’s export market, with Ohio sending Canada nearly $19 billion worth of imports last year — everything from auto parts to furniture to soap.” (Jessica Wehrman, “Trade War with Canada Could Punish Ohio,” Dayton Daily News, 7/11/18)

EVERY CORNER OF OHIO’S MANUFACTURING BASE IS HURT BY TARIFFS. “Now, in the aftermath of the Trump administration’s May 31 announcement that it would slap tariffs of 25 percent on steel and 10 percent on aluminum from Canada, Canadian Prime Minister Justin Trudeau has vowed to strike back hard. Almost immediately, Canada released its own list of retaliatory tariffs, and not just on steel and aluminum. Also included were household products ranging from shaving cream to toilet paper to inflatable boats.” (Jessica Wehrman, “Trade War with Canada Could Punish Ohio,” Dayton Daily News, 7/11/18)

  • “The impact on Ohio is a reflection of what gets made here, and it’s not a small list. Consider this:

o   Yogurt? Dannon, in Minster, makes it.

o   Strawberry jam? Smuckers, pride of Orrville, manufactures it.

o   Shaving cream? The Barbasol brand is made in Ashland.

o   Parts for washers and dryers? Whirlpool, with locations in Ottowa, Greenville and Clyde.

o   Cars? Hondas are made in Marysville, and Chevy Cruzes in Lordstown.” (Jessica Wehrman, “Trade War with Canada Could Punish Ohio,” Dayton Daily News, 7/11/18)

OHIO STATE SAYS FARMERS COULD LOSE ALMOST 60% OF ANNUAL INCOME. “An Ohio farmer could lose more than half of his or her annual net income if the threatened 25 percent tariff is imposed on U.S. soybeans and corn in China, a study from The Ohio State University has found. … Researchers with the College of Food, Agricultural, and Environmental Sciences (CFAES) have projected a 59 percent loss in annual net farm income based on historical trends in yields on corn and soybeans and projections for price drops in both commodities.” (Ohio State University College of Food, Agriculture, and Environmental Sciences, Press Release, 6/12/18)

PRICES FOR CROPS AFFECTED BY TARIFFS HAVE DROPPED BELOW ‘BREAK EVEN POINT.’ “The price for a bushel of soybeans sank 14 percent in June and as of Friday had fallen to $8.40 a bushel on the Chicago Board of Trade, with the soybean futures market tumbling down in anticipation of the 25 percent tariffs on U.S. soybean imports. That’s below the break even price for producing soybeans, which is about $9.70 a bushel, said Sam Custer, Darke County OSU Extension educator. ‘If they don’t have soybeans sold ahead of time and if the market doesn’t come back up, you’re looking at being a dollar and a half under production cost on every bushel they produce,’ Custer said.” (Kaitlin Schroeder, “China Tariffs Sink Prices for Ohio Soybean Farmers,” Dayton Daily News, 7/6/18)

1.5 MILLION OHIO JOBS DEPEND ON INTERNATIONAL TRADE. (U.S. Chamber of Commerce)