News

Costello: Illinois would feel impacts of trade war

The director of the Illinois Department of Agriculture says a new trade war would impact every aspect of the state’s economy. 

Jerry Costello tells Brownfield, “These tariffs only affect you if you drive a vehicle, eat food, produce food, heat your home, use a computer or electronics, or take medication. Other than that, you should be fine.”  He says, “This will affect everyone.”

He says retaliatory tariffs against U.S. commodities would severely effect export demand for the state’s top crops.

“The state of Illinois exported to Mexico, for instance, $1.7 billion worth of corn last year.”  He says, “We exported $957 million of soybeans to China last year.  Almost a billion dollars.  These are huge numbers.”

Costello says U.S. imposed import tariffs would increase prices on the input side as well.

“About 93% of the potash in Illinois is actually coming from Canada.”  He says, “Another perspective is heavy crude, about 52% of the heavy crude in the United States is coming from Canada.”

Costello says his agency continues to take steps to expand access to other export markets, however even threats of a trade war make things more difficult.

“That may make other countries question how we honor our trade agreements,” he says.

He says he’s hopeful cooler heads prevail and further damage to the already depressed ag economy can be avoided.

AUDIO: Jerry Costello – Director of Illinois Department of Agriculture