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DT 22/19 - Analysis of the Effects of Chinese and Mexican Retaliatory Tariffs on Select U.S. Agricultural Commodities on U.S. and Global MarketsISSN/ISBN: 1688-5090
Author/s: Carriquiry, Miguel, Elobeid, Amani; Swenson, David; Hayes, Dermot
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This study examines the impact of retaliatory tariffs imposed on U.S. pork, soybeans, corn and wheat by China and on U.S. pork by Mexico on select U.S. agricultural commodities. Results show a decline in U.S. exports by 32% for pork and corn, 15% for soybeans, and 1.5% for wheat relative to the baseline. Domestic pork prices fall by 12% while crop prices decrease by between 8% and 12%. In the long run, the decline in U.S. production leads to 60,000 fewer jobs and $3.1 billion less labor income. The economy experiences a loss of almost $12 billion in national output. |