The problem with trade wars is that there always a winner and loser (or in some cases losers), writes Dan Jacobs on AgriBusinessGlobal.com. And while in the short term the victory might feel good, even justified, it’s the long-term effects that must be considered. Currently, the U.S. and China have imposed import duties totaling more the $300 billion on each other’s goods – including some crop input products.
The two countries are in the midst of a trade war whose ultimate resolution has yet to be determined. The immediate impact has certainly hurt both sides, particularly the growers, though a recent truce has China once again importing soybeans, easing the initial burden. The truce is scheduled to last until March.
In the meantime, both sides seem eager to resolve the situation long before then. The Chinese foreign ministry said Monday that both sides have expressed finding a way to end the dispute. And a deputy U.S. trade representative was in China Monday and Tuesday for two days of discussions that hopefully could lead to an end to the conflict.