NASHVILLE, Tenn. (WKRN) — There is concern among Tennessee farmers amid back-and-forth over tariffs issued by President Donald Trump. Though Trump issued a 90-day pause on tariffs for most countries, he did not pause any tariffs on Chinese goods.
The tax rate on Chinese imports is up to 125%. In retaliation, China has issued an 84% tariff on goods from the United States. Tennessee heavily relies on agricultural exports such as soybeans, wheat and corn.
Past Rutherford County Farm Bureau President Mike Vaught explained how these tariffs are affecting the state’s agriculture industry.
“The immediate effect is a price drop,” Vaught said. “…If [the tariffs] last long-term, it could affect long-term, lower prices.”
According to the U.S.-China Business Council, an organization that expands opportunities for American businesses in China, some of Tennessee’s top exported goods to China include miscellaneous crops, oilseeds and grains.
Thousands of Tennesseans also depend on U.S.-China trade for their jobs. For example, farmers import fertilizer from China to grow crops. Economist and Middle Tennessee State University Professor, Dr. Wisarut Suwanprasert, likened the tariff to a bargaining chip.
“In the long run, we want free trade. I guess it’s a matter of we want to reach that conclusion,” Suwanprasert said. “I think these tariffs are more like a threat that we try to restart the whole negotiation. We want a new deal.