Wisconsin farmers are anticipating momentary setbacks as a result of ‘Independence Day’ tariffs levied by President Donald Trump, but remain optimistic about their ability to reset America’s trade relationships.
The tariffs, which caused initial market panic and received significant industry pushback, have already resulted in numerous trade deals with some of the world’s economic powerhouses including the European Union and China.
“I’m super supportive of fair and free trade, and I think the end result is gonna be good when we get done with the process,” Kevin Klahn, a grain farmer from the village of Brooklyn, Wisconsin, said. “But there’s gonna be some pain in the meantime.”
The recently struck trade deal with the European Union includes hundreds of billions of dollars in investment into the United States and a major boon to farmers, with the European Union pledging to remove barriers to US exports.
The encouraging news from the European Union comes as Trump continues to hammer out a long term trade deal with China and is bringing agricultural concerns front and center.
On Monday, Trump urged the Chinese government to increase their purchases of soybeans as the country faces a looming shortage, a move that could be a major boon to United States farmers. (RELATED: Wisconsin Joins Bipartisan Efforts to Restrict Chinese Ownership of Farmland)
While recent developments have increased optimism for the long term, Klahn said that he and other farmers are preparing for short term issues that an increase in retaliatory tariffs may cause.
“We’re spending less money, we’re investing in less equipment, trying to stretch the dollar out a little longer, anticipating that those impacts are gonna come at us,” he said.
