Trade war with China tough on Washington farmers

AP  |  Spokane 

The war with is making life difficult for many farmers across

The state's 1,900 wheat growers, who export the vast majority of their crop, are particularly hurt. But so are cherry growers who just harvested their highly perishable crop.

stands to lose USD 480 million in agricultural exports to because of retaliatory tariffs, according to the state Department of

Mike Carstensen, a wheat grower whose farm is near Grand Coulee Dam, said that last year was the No. 4 customer for his wheat.

"To date they have bought zero," Carstensen said of this year's crop.

Gary Bailey, a near the Washington-state border, said he hasn't sold any wheat to China since March.

"I hope it doesn't last too long," Bailey said of the war. "We've developed relationships with these countries and as we go along, they will be replacing our wheat with someone else's. We want to keep those relationships strong and healthy."

has raised duties on billions of dollars' worth of Chinese imports, and China retaliated with similar penalties.

Chinese leaders have tried to cushion the blow to their own by targeting US goods its importers can get from other countries.

Mike Miller, a outside of Ritzville, about 60 miles (100 kilometres) west of Spokane, thinks the war has had minimal impacts on global wheat prices so far.

"Other conditions in the world wheat market have caused a bump upward in prices that are not related to our own international trade policies," Miller said.

Poor wheat crops in and have prices "on a little upward swing," he said.

More than 90 per cent of the USD 600 million wheat crop in is exported to other countries each year.

Miller said farmers are eternal optimists who understand the is seeking better trade conditions with China.

"I just wish wasn't being singled out in this retaliatory climate," Miller said.

"Our biggest concern is that we've spent 50 or 60 years developing markets, and if we lose them then you don't turn the switch and come back on," Miller said.

"The uncertainty of how long it takes to earn back market share concerns me the most."

Meanwhile, the 2,500 cherry growers in the state say they will lose some USD 86 million this season because of retaliatory tariffs by China.

That figure was calculated by the Horticultural Council, which covers trade issues.

China was the largest importer of cherries last year. But the country placed a 50 per cent tariff on cherries after placed tariffs on some Chinese products.

Cherries are highly perishable and must be eaten shortly after they are harvested. The 2018 season has already ended for Washington growers.

Washington's two US senators and two members who represent cherry country recently sent a letter to the US Department of asking for financial relief to cherry growers.

The letter was signed by Sens. and Maria Cantwell, both Democrats, and Reps. and Dave Reichert, both Republicans.

If their request is granted, cherry growers can get a piece of the USD 12 billion that has made available to farmers hurt by the tariff war.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, August 30 2018. 00:00 IST