SIOUX FALLS, S.D. - (KELO.com) Senator John Thune, a member of the Senate Agricultural Committee, met with Secretary of Commerce, Wilbur Ross, concerning the harmful effects that the White House's proposal to move forward with hundreds of billions of dollars in additional tariffs would have on South Dakota's agricultural industry.
Senator Thune says, “In fact, one commodities analyst this week described current commodity markets as ‘wildly dangerous,’ largely due to trade uncertainties. The recent one-dollar drop in soybean prices will potentially cost soybean producers in just my home state of South Dakota, alone, $225 million."
Secretary Ross is of a different mindset. He stated, during their meeting, that he "met with a delegation of producers from North Dakota...that they felt the market decline has been exaggerated by speculative activity." Secretary Ross went on to say, " our own research tends to confirm it would be relatively difficult for China to fully implement their threat on Soybeans."
Brazil is the second largest supplier of soybeans to China, approximately 55% of what China needs, where we supply about 32%. Ross says, " for Brazil to replace us...they would need to increase their exports of soybeans to China by 60%...even if China pays a premium to Brazil to redirect shipments, that would open up those markets for American producers. "
Secretary Ross says, " he doesn't think the Chinese want a trade war any more than we do...the President's general view is the trade war was lost years ago this is an effort to fix the outcomes that were unsatisfactory from it."