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Chamber opposes Chinese tariffs

April 12, 2018 at 10:23 AM

IOWA CITY - The Iowa City Area Chamber of Commerce is opposed to the proposed trade tariffs by the Trump Administration against China, and to the idea of the United States instigating a trade war. Instead, we advocate for a swift negotiation that avoids these harmful tariffs while working towards fairer trade practices with China.

The retaliatory tariffs proposed by China would severely harm Iowa and its economy. Tariffs on soybeans, pork, and ethanol would hit the already struggling farm economy, causing ripple effects throughout the state.

According to the USDA and U.S. Energy Information Agency, Iowa is the number one producer and exporter2 of pork, the number one producer of ethanol3, and the number two exporter of soybeans1 in the U.S. With such great exposure to the proposed tariffs, there is an extreme risk that as exports decrease, family farms will suffer, local lenders will feel increased financial pressure, and economic growth will be negatively affected (particularly in rural areas).

A quick and reasonable conclusion that avoids tariffs is necessary to keep Iowa’s economy right-side-up and we urge our congressional leaders to speak out against implementation of this policy.

“We appreciate that our congressional officials have been outspoken on these issues,”said Kim Casko, President & CEO of the Iowa City Area Chamber of Commerce. “There is still time to find solutions that keep America’s economy safe while increasing fairness in international trade, and we’re confident that Governor Reynolds will be a strong advocate for our state when meeting with the President on Thursday.”

Facts:

  • Soybeans represent $22.8B in exports nationally per year, with Iowa ranked as the second largest producing6 and exporting state in the nation, with $3.11B in exports1.
  • Iowa exports nearly three times as much pork as its nearest competitor at approximately $2B per year, compared to $5.9B nationally1.
  • Iowa is the largest ethanol producing state in the country as well. Of all exports of ethanol in the past 3 years, approximately 9% was exported to China3-5.

 

1https://www.ers.usda.gov/data-products/state-export-data/

2http://www.iowapork.org/news-from-the-iowa-pork-producers-association/iowa-pork-facts/

3https://www.eia.gov/todayinenergy/detail.php?id=31832

4https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=m_epooxe_eex_nus-nch_mbbl&f=a

5https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=m_epooxe_eex_nus-z00_mbbl&f=a

6https://www.usda.gov/nass/PUBS/TODAYRPT/cropan16.pdf