[Congressional Record Volume 164, Number 59 (Thursday, April 12, 2018)]
[House]
[Page H3154]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TARIFFS ARE HARMING FARMERS AND RANCHERS
The SPEAKER pro tempore. The Chair recognizes the gentleman from
Missouri (Mr. Cleaver) for 5 minutes.
Mr. CLEAVER. Mr. Speaker, today I rise to speak about a very
important issue to my constituents in Missouri's Fifth Congressional
District and, frankly, millions of farmers and ranchers all across this
great country.
Recently, President Donald Trump announced his intention to place a
$50 billion--that is billion with a ``B''--in tariffs against Chinese
goods, claiming that China has been taking advantage of the United
States for too long. I wish that someone in the White House, someone on
the staff had cautioned the President on the negative impact his
launching of a trade war would have on this country. This unvetted
decision has and will continue to cause significant harm to many of my
constituents and to rural Americans throughout the heartland.
Following President Trump's announcement of his intended tariffs,
predictively, the Chinese responded with $50 billion in proposed
tariffs of their own. These tariffs, which would be as high as 25
percent, would target 128 American products such as pork, beef, cotton,
soybeans, corn, specific types of vehicles, and airplanes.
First, I want to talk about soybeans. Last year, the United States
exported $14 billion worth of soybeans to China. In Missouri, my home
State, soybeans are the number one cash crop, contributing $7.7 billion
in total output and supporting more than 20,000 jobs in our State.
One out of every three rows of soybeans grown in Missouri goes to
China, and one in every four rows grown in the United States goes to
China. The day the Chinese announcement was made, soybean futures on
the stock market were down almost $0.40 a bushel. This was only after
the tariffs were announced. Can you imagine the kind of losses soybean
farmers would face if they were actually implemented?
Now, how about pork? Over the past 10 years, the United States has
been, on average, the top exporter of pork in the world. Last year
alone, nearly $6.5 billion in pork was exported from the United States
with $1 billion of that being exported to China. Pork exports help to
support about 550,000 jobs.
Midwest States like Missouri dominate hog production and exports.
Missouri is ranked seventh, and our next-door neighbor, Kansas, is
ranked tenth.
The Chinese have announced that they will also target U.S. corn,
which will negatively impact the corn-based ethanol plant in my
district, Mid-Missouri Energy. The plant is located in a little town,
Malta Bend, and probably to some people that is not important, but it
is a major economic stabilizer in that town and the entire area.
Economic losses to that plant or even closure of the plant would have
rippling effects throughout the surrounding area.
Now, I know Mr. President is a real estate man, so he might not
understand how business works on a farm, but these people work on
razor-thin margins. In any given year, a bad crop, lack of demand, or
Mother Nature's wrath can cause an economic downturn that leaves them
struggling. American farmers have enough unknown variables they have to
deal with. These reckless threats of tariffs on one of our biggest
trading partners do not need to be added to that list.
If this so-called war continues, we can expect Boeing plants, such as
the one in St. Louis, Missouri, down the street from us in Kansas City,
to hit China, and then China may back away from ordering some 7,000
planes that would strengthen and inject over $1 trillion into our
State's economy.
The President is correct, the Chinese do steal U.S. intellectual
property and, yes, there is a trade imbalance in this relationship.
Nevertheless, even with only one class in economics, I understand
clearly that trade wars are not good. No one wins.
President Trump promised to negotiate new and improved trade deals,
but his negotiating skills are falling far short and our farmers and
ranchers will pay the price. I encourage President Trump to reconsider
his shortsighted approach to trade and to offer him my help in finding
other solutions to address our problems with China.
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