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The path to fair trade

Ted McKinney with the National Association of State Departments of Agriculture says the path to fair trade is likely going to be a bumpy ride.

“Let’s take our sedatives in the morning, replenish at noon if we need to and add a couple of seatbelts.”

The United States has implemented partial retaliatory tariffs on more than 50 countries, including China, Japan, Brazil and the United Kingdom. Those tariffs range from a base of 10% to 49%.

McKinney says he’s still digging into the details, but reciprocal tariffs are an interesting way to level the playing field.

“For sure, without any hesitation, trade isn’t fair around the world. Our tariffs on products from their countries are a bit lower, sometimes a lot lower, than tariffs we’d pay for entry to their country. There’s intrigue to what that looks like.”

The former USDA Under Secretary of Trade tells Brownfield he’s optimistic other countries will change their approach on tariffs.

“Then, once we hit some sort of equilibrium, whatever fair trade is defined as being, then, maybe we can subside and remove or lower those. I think, ultimately, that’s the best way to go about it.”

McKinney says the duration of the tariffs are important and while farmers and some state ag leaders are nervous …

“It is clear to me that predominately, farmers voted for Mr. Trump. The magnitude and the volume of these tariffs is a big surprise, it really is, but I think they’re hanging in there in the hope and prayer the president will live up to the respect he’s shown for farmers.”

McKinney says if fair trade can be reached, the U.S. can focus on negotiating more new trade deals. And he’s optimistic to see what comes from USDA’s six trade missions in 2025.