Nebraska agricultural producers are sitting on edge as President Donald Trump follows through on his promises of trade tariffs on Canada, Mexico and China.Those three countries account for 95% of Nebraska’s corn exports, 90% of its soybean exports, 32% of its pork exports and 23% of its beef exports.On Monday, there was a little sigh of relief as the president paused his 25% surcharge on Mexican and Canadian goods for 30 days while negotiations continued on border security.”As far as we know right now, it’s a fluid, fluid conversation,” said Nebraska Farm Bureau President Mark McHargue.But talk of a trade war, especially with Nebraska’s largest foreign partners, has him concerned.”Usually, when retaliation happens, it usually comes against agriculture,” McHargue said.READ MORE: South Omaha restaurant fears impact of tariffs; says many small businesses ‘won’t survive’McHargue said Nebraska exports account for $3.5 billion, with a majority going to Mexico, Canada and China.Nebraska also has cattle and hogs from Canada and Mexico that supply feed lots and packing plants.”So it’s just a ripple effect,” McHargue said. “Agriculture and the state of Nebraska certainly is one of the potential unintended consequences that certainly can affect every farmer and rancher and affect the economy of Nebraska,” McHargue said.On Monday, Nebraska Congressman Mike Flood assured farmers would not shoulder the brunt of a trade war.”If these tariffs begin to affect farmers in our country, you will see Trump administration respond, understanding how important they are to feeding the world, and they are the backbone of America,” Flood said.Trump could respond as he did in 2018 when he levied tariffs on China during his first presidency. But it cost taxpayers, said Nebraska Farmers Union President John Hansen.”Twenty-three billion dollars was paid out to American agriculture for lost income because of the way the tariffs were done last time. It remains to be seen how it gets done this time,” Hansen said.Hansen said farmers were not made whole by those payments. “Agriculture is not in a good position right now to absorb much in the way of additional financial hits,” Hansen said.He said last time, China turned to competitors such as Brazil to purchase its soybeans.”So we went from being the preferred customer to the customer last resort. And so we never really fully recovered from that,” Hansen said.Both Ag leaders said they understand the need to bring those countries to the negotiating table but said tariffs need to be carefully considered.”Tariffs are a pretty big hammer, and when you use that, you’re going to break up a few things other than maybe just fix the problem,” McHargue said.NAVIGATE: Home | Weather | Local News | National | Sports | Newscasts on demand |
Nebraska agricultural producers are sitting on edge as President Donald Trump follows through on his promises of trade tariffs on Canada, Mexico and China.
Those three countries account for 95% of Nebraska’s corn exports, 90% of its soybean exports, 32% of its pork exports and 23% of its beef exports.
On Monday, there was a little sigh of relief as the president paused his 25% surcharge on Mexican and Canadian goods for 30 days while negotiations continued on border security.
“As far as we know right now, it’s a fluid, fluid conversation,” said Nebraska Farm Bureau President Mark McHargue.
But talk of a trade war, especially with Nebraska’s largest foreign partners, has him concerned.
“Usually, when retaliation happens, it usually comes against agriculture,” McHargue said.
READ MORE: South Omaha restaurant fears impact of tariffs; says many small businesses ‘won’t survive’
McHargue said Nebraska exports account for $3.5 billion, with a majority going to Mexico, Canada and China.
Nebraska also has cattle and hogs from Canada and Mexico that supply feed lots and packing plants.
“So it’s just a ripple effect,” McHargue said.
“Agriculture and the state of Nebraska certainly is one of the potential unintended consequences that certainly can affect every farmer and rancher and affect the economy of Nebraska,” McHargue said.
On Monday, Nebraska Congressman Mike Flood assured farmers would not shoulder the brunt of a trade war.
“If these tariffs begin to affect farmers in our country, you will see Trump administration respond, understanding how important they are to feeding the world, and they are the backbone of America,” Flood said.
Trump could respond as he did in 2018 when he levied tariffs on China during his first presidency.
But it cost taxpayers, said Nebraska Farmers Union President John Hansen.
“Twenty-three billion dollars was paid out to American agriculture for lost income because of the way the tariffs were done last time. It remains to be seen how it gets done this time,” Hansen said.
Hansen said farmers were not made whole by those payments.
“Agriculture is not in a good position right now to absorb much in the way of additional financial hits,” Hansen said.
He said last time, China turned to competitors such as Brazil to purchase its soybeans.
“So we went from being the preferred customer to the customer last resort. And so we never really fully recovered from that,” Hansen said.
Both Ag leaders said they understand the need to bring those countries to the negotiating table but said tariffs need to be carefully considered.
“Tariffs are a pretty big hammer, and when you use that, you’re going to break up a few things other than maybe just fix the problem,” McHargue said.
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