Ag Economics and Tariffs

From the Ag Information Network, I’m Bob Larson. GOP Senator Chuck Grassley says today’s modern economy is way different from the tariff days of the 1930s when the Smoot-Hawley Act imposed 20% tariffs and was blamed for worsening the Great Depression.

But Grassley suggests today’s economy may be better suited for tariffs …

GRASSLEY … “Trade was entirely in manufactured or agriculturally produced products. Today, there’s trade in finances and digital, and it’s an entirely different environment.”

Grassley is now less critical of President Trump’s tariffs than he was in April when he threatened 110 countries with tariffs …

GRASSLEY … “Twenty countries with which we do big trade with really sat down with us. There’s been a lot of success, and I feel a little more comfortable with what the president’s doing.”

That after the U.S. established trade framework deals with the EU, UK, Japan, South Korea, Australia, and continue talks with China …

GRASSLEY … “But I can’t say I’m entirely comfortable with it at this point, because of the uncertainty that comes from increasing tariffs one day and reducing them the next day, maybe on the same country, and the uncertainty that it brings.”

Canada’s tariffs ended higher. China’s, lower, as both try to work out deals with the U.S.