Officials worried about war on trade

The growing trade war between the United States and China could prove a bitter harvest for farmers in Southeast Missouri and elsewhere, two high-ranking state politicians said Thursday.

State Sen. Wayne Wallingford, R-Cape Girardeau, and outgoing House Speaker Todd Richardson, R-Poplar Bluff, discussed the situation at a meeting Thursday of the Southeast Missouri Press Association in Cape Girardeau.

"It is very concerning because agriculture is the No. 1 industry in the state of Missouri," Wallingford said.

The administration of President Donald Trump last week imposed 25 percent tariffs on $34 billion in Chinese products. China retaliated, raising duties on American products.

The Trump administration now is readying tariffs on another $200 billion in Chinese imports, according to The Associated Press.

Wallingford said if China follows suit, it could make it more difficult for Southeast Missouri farmers to find a market for their crops.

"Soybeans is one of the No. 1 products exported," the state senator said. China has been the biggest buyer of American soybeans, he said.

The lawmakers' comments come amid similar concerns expressed by the Missouri Farm Bureau.

Blake Hurst, president of the Missouri Farm Bureau, wrote in the organization's magazine "I always say that we have challenges in international trade, that China doesn't always play by the rules and President Trump is attempting to fix those problems."

But Hurst wrote farm income has dropped for five consecutive years.

While farmers are "patient and patriotic, at some point the drop in grain and livestock prices will become a real problem for the future profitability of our farms," he wrote.

"China will still need some of our soybeans, but in the long term, we run the risk of no longer being seen as reliable suppliers for export customers," Hurst said.

Wallingford and Richardson said the Trump administration's decision to raise tariffs on imported steel and aluminum benefits American plants that manufacture such products.

Both he and Richardson said U.S. policy was a factor in the opening of the Magnitude 7 Metals smelter, formerly home to Noranda Aluminum.

But the "push and pull" of economic policies also can have a negative impact on businesses, including a nail manufacturing plant in Poplar Bluff, which has already laid off 60 of its 500 employees, and Southeast Missouri farmers, Richardson said.

Wallingford said he understands the reasoning behind raising tariffs. China, he said, requires United States companies to partner with Chinese firms and share their technology to do business in the Asian nation.

But Wallingford said, "You don't really win a trade war." Some historians, he added, maintain tariffs prolonged the Great Depression.

Wallingford said he would prefer the United States work with other nations to address trade issues rather than impose tariffs.

While the federal government sets trade policy, Richardson said the state government needs to help make it cost effective for farmers to get their goods to market.

Richardson also talked about Missouri's need for a skilled workforce.

He said public colleges and universities in the state need to train students to fill jobs needed in today's economy.

Richardson said, "We don't have a shortage of English majors. We have a shortage of nurses."

Missouri needs more welders, not more philosophers, he told members of the press association.

He said public colleges need to be given flexibility to offer programs to train tomorrow's workers while also keeping some restrictions to avoid duplication of expensive degree programs.

mbliss@semissourian.com

(573) 388-3641