CHICAGO (CBS) – Stocks closed lower on Monday after China announced plans to impose tariffs on $3 billion worth of U.S. imports.
A good portion of Illinois’ economy could be hit hard in a possible trade war.
CBS 2’s Vince Gerasole traveled to a farm in Maple Park, Ill., to understand the impact the state’s pig farmers.
The Gould family farm produces some 17,000 pigs each year in their pens, many for foreign markets
“We produce more than we eat in the United States,” said Chris Gould. “We have to export.”
China is the third largest market for U.S. pork and its new 25 percent tariff has farmers like the Goulds worried.
“Every extra penny is one less sale that’s going to happen,” Gould said. “Any sale that goes away is painful.
From pork to apples to nuts, China is imposing tariffs of 15 percent to 25 percent on some 128 U.S. products.
It follows the Trump administration’s tariffs on cheaper Chinese steel and aluminum products, which the White House says led to billions of dollars in losses for U.S. firms.
“How previous presidents allowed that to happen is disgraceful, but we are going to take care of it,” President Trump said.
In the short run, this could mean lower prices for consumers. However, analysts say the Chinese-imposed tariffs target farmers, a voting block that helped get Trump into the White House.
Lean hog futures closed down $3 today, which is a significant drop for pig farmers. They are worried about more drops in the days ahead.