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EU threatens trade retaliation

Member states of the European Union say a retaliation plan is in place if trade negotiations fall apart with the U.S.

Iowa State University Extension economist Chad Hart says the EU took a similar stance during President Trump’s first term.

“Because what we saw the EU do back then was they picked their targets for tariffs based not necessarily on the economics of where they could (inflict) the most pain, but they were looking for where they could put the most political pressure on.”

He tells Brownfield that largely excluded U.S. agricultural goods.  But if the EU targets ag this time, Hart is concerned because exports to member states are on the rise.

“They have been one of our growth markets, especially over the past year, year and a half. So they have a little more, if you will, action that they can play with us.”

Hart says the EU is the second largest export market for U.S. soybeans behind China and fifth largest for corn.