Presumptive Republican Presidential candidate Donald Trump spoke this weekend to supporters in Nebraska and talked about American agricultural products facing tariffs overseas, specifically in Japan. Trump plans to go “tit for tat” with Japan, saying, “If you want to charge a 38 percent tariff on Nebraska beef, we’re going to slap a 38 percent tariff on cars.” Trump added he would make sure China buys U.S. beef as well. Most of China is not open to direct exports of U.S. beef, although it is allowed in Hong Kong. Yet Trump opposes the Trans-Pacific-Partnership, a trade agreement that would lower the tariff on American beef going to Japan, albeit slowly over time. Japan’s tariffs on U.S. beef would fall to nine percent over the next 15 years. U.S. beef producers support the TPP because it would level the playing field with Australia in the Japanese market. Incidentally, US automakers have criticized TPP because they feel it doesn’t give them enough access to the Japanese market.
Source: NAFB News Service