On Monday, Congressman Steve King released the text of a letter he cosigned urging President Trump to “work diligently in negotiations with China to address China’s trade practices in a manner that will avoid retaliation.” Sponsored by Representative Kristi Noem of South Dakota, the letter outlines concerns about the impacts proposed with China’s retaliatory tariffs of 15 to 25 percent, particularly those on American agricultural exports of pork, ethanol, soybeans, corn and beef. The letter was signed by 46 members of Congress and sent to the President last Friday and asks him to reconsider his intention to place tariffs on steel and aluminum. King says he has long warned the administration about the possibility of the adverse effects that retaliatory tariffs could have on American agriculture. Several months ago, he spoke with President Trump and other advisors on this topic. He says he reminded them all of the 1980s’ farm crisis, which was triggered by former President Jimmy Carter’s decision to embargo grain shipments to the former Soviet Union. King says the Midwest has never fully recovered from the economic pain caused by those actions. A full copy of the letter can be found with this story on our website.
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Dear Mr. President,
It is no secret that some of your strongest support comes from communities that rely on agriculture for survival. As representatives of districts with a heavy agriculture presence, we have been pleased about so much of your administration’s work related to agriculture. Your leadership and your administration have been vital in providing much-needed relief to Farm Country, from leading the charge on fundamental tax reform to your administration’s U.S.-China 100-Day Action plan securing access for U.S. beef producers to the Chinese market for the first time since 2003. We strongly support your efforts to open China to U.S. agriculture and to take strong steps to end China’s unfair trade practices and other cheating.
All our hard-won gains in Farm Country, however, are at serious risk of being wiped away because China is threatening retaliation against American farmers. We appreciate your commitment to stand by U.S. farmers and ranchers in the face of these outrageous threats.
We’ve seen many recent examples of China’s extraordinary threats to our agriculture community. On January 22, the United States Trade Representative announced safeguard tariffs on imported residential washing machines and solar cells and modules. Less than two weeks later, China launched a baseless antidumping and countervailing duty investigation on sorghum imports from the United States. This retaliatory measure is severe, given that a full 77 percent of U.S. sorghum exports are sold to China, with a value of $1 billion.
Similarly, on March 22, you approved tariffs on imported steel and aluminum under Section 232. That very day, China again took retaliatory measures against America’s agriculture exports, proposing tariffs of 15 percent on agricultural goods such as apples, nuts, ethanol, and wine, and a 25 percent tariff on U.S. pork exports. With U.S. pork exports worth $1.1 billion last year, this reprisal will substantially damage a very important industry.
Most recently, less than 11 hours following the announcement of the Administration’s proposed Section 301 product list, China countered with proposed 25 percent tariffs on agricultural goods such as soybeans, corn, frozen orange juice, wheat, and beef. Soybean exports are worth $14 billion to an agriculture economy already enduring historically tough times.
Agriculture Secretary Sonny Perdue said recently that farmers are the “tip of the spear when it comes to retaliatory measures” and you have acknowledged that farmers are “great patriots.” Our farmers and ranchers are resilient, but they are already struggling with low commodity prices and drought. With net farm income down by half over the last four years, and no relief on the horizon, they are particularly vulnerable.
Accordingly, we appreciate your support for farmers and ranchers in the face of Chinese retaliation, and we encourage the Administration to work diligently in its negotiations with China to address China’s trade practices in a manner that will avoid retaliation, helping to return our agriculture industry to a state of certainty and back on the road to prosperity.
Sincerely,
Rep. Kristi Noem, Rep. Steve King, 44 Additional Members of Congress
