What Oklahoma Agricultural Producers Should Expect With Trade War Looming

Apr 10, 2018

As the United States and China propose tariffs on one another, possibly leading to a trade war, one Oklahoma grain specialist is urging Oklahoma agricultural producers to stay focused on the long-term.

Data from the U.S. China Business Council found Oklahoma exported roughly $267 million dollars worth of goods to China in 2016. During that year, some of Oklahoma’s top exported goods were oilseeds, grains, meat and aerospace products and parts. Some of these goods, including soybeans and beef, were on China’s proposed list of tariffs released last week.

Data from the U.S. China Business Council found Oklahoma exported roughly $267 million dollars worth of goods to China in 2016.
Credit U.S. China Business Council

Oklahoma State University grain marketing specialist Kim Anderson has told Oklahoma producers to focus on their products instead of the national dialogue on tariffs.

 

"Concentrate on producing a quality product that the customers demand and I believe everything else will take care of itself."

 

Anderson says during the short-term uncertainty in the market will increase the price of some products, like it has soybeans. But, the long-term consequences of tariffs on Oklahoma and national producers are not yet clear.

 

"In a world market it is like a spiderweb, and if you break one of those little supporting strings it impacts the whole world."

 

Anderson says even if the tariffs are imposed, there would be a 60-day period before producers would feel effects.