Tariffs Could Reshape Global Trade

Ongoing trade tensions and rising tariffs are causing concern among farmers, with many wondering how long the disruptions will last. NDSU Extension Crops Economist Frayne Olson explained there is the potential to alter global trade patterns. “If the tariffs come on and they stay on for an extended period of time, now all of a sudden buyers and sellers start looking at alternative flows,” Olson said. “They look at alternative systems or alternative supply chains that they have to go to.” He warned that once these shifts happen, it becomes much harder to return to previous trade relationships. One of the biggest concerns is China’s declining soybean purchases from the U.S., which have dropped significantly since the last trade war. “Before the trade war, China purchased, percentage-wise, give or take about 40 percent of their soybeans from the United States,” Olson said. “After the trade war, that number has dropped, let’s call it 30 percent for simple math, versus 70 percent from Brazil and other sources.”