Interest rate decision looms as Fed discusses tariffs and trade war impacts
With rising tariffs looming, experts warn of increased consumer prices as the Federal Reserve convenes to address economic implications. (Scripps News)
Scripps News
- Trump says tariffs will start on April 2
- Tariffs are one part of several that may affect corn and soybean prices
LANCASTER − What would tariffs by the Trump administration on Mexico, China and Canada mean locally?
It’s hard to say, just as it’s hard to say what impact any tariffs could have on Fairfield County’s approximate $100 million agricultural industry.
USA Today reports that President Donald Trump has said the “reciprocal tariffs” taking effect April 2 will offset trade practices his administration deems unfair. U.S. Treasury Secretary Scott Bessent said the tariffs are designed to protect the U.S. economy, its workers and industries.
Ohio State Extension Office Program Assistant Stan Smith said any tariffs Trump levies would have an impact on local agriculture. But he said the uncertainty makes it hard to say just how much.
“It’s a moving target,” Smith said. “They’ve talked about tariffs, they’ve delayed them. Every time there’s a new announcement, speculators take that new announcement and try to speculate on how it’s going to impact values of things, prices of things, the cost of things. It’s just a moving target as when these things are actually going to happen.”
He said the tariff talk the last few weeks has been like a roller coaster and will probably continue to be so into the foreseeable future.
Smith said tariffs would impact agriculture because other countries would stop buying from American farmers if they could get the same products cheaper elsewhere.
However, Smith said some think Trump’s ultimate goal in threatening tariffs is to bring the three countries to the bargaining table for things his administration wants.
“They’re still dancing that dance,” he said. “But fundamentally, nothing’s really changed.”
Smith said corn and soybean prices have recovered some since the tariff issue came about a few weeks ago, although they are still off a few cents. But he said other things can affect prices, such as how much farmers in South America can produce and export, among other things.
Smith said potential tariffs are one of a number of compounding factors that could affect prices for crops like corn and soybeans.
He said tariffs would not just affect agriculture.
“Automobile dealers are speculating on the value of automobiles if tariffs are implemented,” Smith said. “Every phase of consumption is being affected on any given day, either positively or negatively, depending on what the news of the day is.”
jbarron@gannett.com
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