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Tariff increases from trade war impacting farmers and other businesses

Posted at 6:52 PM, Aug 29, 2019
and last updated 2019-08-29 19:52:08-04

OMAHA, Neb. (KMTV) — The trade war between America and China continues with many still feeling the impacts of it. Soon those existing tariffs could increase, and another set of them could increase as well.

"We don't know who our customers are going to be, at this point it doesn't look like China's going to be our customer," says Dennis Fujan, a soybean and corn farmer in Nebraska.

Tariffs on Chinese goods have caused China to retaliate against America by not buying goods like soybeans like they once did. Fujan believes farmers will still be able to sell their crops, but for a low price. "It's getting harder and harder to keep producers in business, I think several farmers are even considering quitting farming," says Fujan.

With the trade war ongoing, more of the same is expected to come. The 25% tariff on $250 billion worth of Chinese goods is set to increase to 30% on October 1st.

Ernie Goss, Economics Professor at Creighton University questions the use of the tariffs, and is concerned with the short term impacts of them. It won't be just farmers feeling the impacts of it as another increase of tariffs on other Chinese goods is set to begin on September 1st, and will eventually impact things like phones and electronics, along with shoes and clothes.

"How much longer can these companies, American companies, absorb the increase in costs, and I think we're stretching it right now so American consumers will begin seeing those impacts with higher prices," says Goss.

Both Goss and Fujan believed something needed to be done about China and their trade tactics. As Fujan hopes a deal is reached soon to bring back a sense of certainty.

"We need to get back to farming instead of worrying about politics," says Fujan.