US agriculture industry in 'full-blown crisis' as Trump tariffs shrink Chinese orders
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President Trump’s tariffs have caused a severe crisis in the US agricultural sector. The industry is facing a significant downturn due to canceled orders from China, leading to farmers having to lay off employees and even close down their operations, as reported by a trade association.

Last week, China canceled its largest pork order since the start of the COVID-19 pandemic in 2020, scrapping a shipment of 12,000 tons of pork, according to the Department of Agriculture.

Additionally, China reduced its soybean orders to a mere 1,800 tons during the week ending April 17, a stark decline from the 72,800 tons purchased in the previous week, as indicated by the USDA.

Wes Shoemyer, who runs a family farm in Clarence, Mo. that raises cattle and grows grains, said he’s nervous about whether US exporters will find foreign markets for his crops.

“We are all still planting but it’s on a leap of faith that there will be a foreign market to export it to,” he told The Post. 

Trump’s 145% tariff on Chinese goods and the nation’s retaliatory 125% rate on the US have thrown a major wrench into trade across the board between the world’s two largest economies. 

In response, there has been a drastic increase in canceled sailings by Chinese vessels to US ports, with China to US vessel traffic down 44% compared to a year earlier, according to the Vizion Global Ocean Bookings Tracker.

The impact of cancelled Chinese orders will be felt across the industry – starting with farms forced to shutter, then slamming the longshoremen out of work from cancelled sailings, then the truck drivers who transport goods from the ports, said Peter Friedmann, executive director of the Agriculture Transportation Coalition.

“It’s already happening,” Friedman said. “Unlike toys and television, so forth, it’s pretty dramatic. If nobody’s buying, you may harvest it because you got to get it off the trees, like cherries and fruit – but what do you do with it if you can’t sell it?”

Shoppers may see a temporary influx of cheaper produce at supermarkets – like cherries that cost a quarter of what they used to – but that’s just a sign of US farmers going out of business and giving away their excess supply, Friedmann said.

A wood pulp and paperboard exporter received an immediate cancellation of 6,400 metric tons of goods – and a hold on 15 railcars sitting in “demurrage,” when fees are charged for a delayed movement of goods, according to the AgTC.

The exporter has 9,000 metric tons of product already on the water, headed for China and expected to arrive May 13 – and the company worries it could be forced to divert that shipment to a costly warehouse if buyers refuse the cargo at port.

Meanwhile, a grass seed exporter told AgTC that it received just two weeks’ notice that eight loads were being canceled by Chinese customers, even though vessel bookings were already in place.

The Chinese market would be a huge loss for American farmers, who exported more than $27 billion worth of US agricultural goods to the country last year, according to the USDA.

US farmers across the country are already in crisis mode – from hay farmers to fruit and nut exporters to those growing cotton and hardwood lumber, according to Friedmann.

US soybean farmers, in particular, will lose out on a crucial market. China is the world’s top buyer of soybeans, importing nearly $13 billion worth from the US last year, according to the USDA.

But Zhao Chenxin, a top Chinese official with the development and reform commission, on Monday said the country will be fine without its supply of US grains like soybeans, corn and sorghum, which “can be easily substituted and the supplies on the international market are quite sufficient.”

The nation is expecting a huge shipment of the oilseed from South America as it continues to shift supply over to Brazil.

“Other countries have been treating us – our exports – unfairly for a long time. It is true,” Friedmann said.

“However, these are problems that have been generated over decades. They’ve developed gradually over decades. We cannot eliminate them with a snap of the fingers, with a sudden announcement, with a quickly imposed tariff,” he said.

“If nobody’s buying the soybeans, you can’t just cut hours – you have to eliminate hours. You can’t afford to pay people if nobody’s buying your products,” Friedmann told The Post.

US soybean farmers lost a good chunk of their share of the Chinese market to Brazilian counterparts during the 2018 trade war, during Trump’s first administration, according to The American Soybean Association. 

Shoemyer, the farmer from Missouri, is doubly concerned over a contract he signed with the US government to grow cover crops – rye, wheat and grasses – on his land to help prevent runoffs during the winter.

He invested $45,000 to plant the crops, but said DOGE has cut funding for the Soil and Water Outcomes Fund, which administered the grants to farmers, who are supposed to be paid later this month.

“I never thought I’d sign a contract with my own government and not get paid,” Shoemyer said.

The White House did not respond to The Post’s request for comment.

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