McConnell Wants a Swift End to Trade War

McConnell

For more than a year now, the United States and China have been engaged in a bitter trade war of tariffs, rhetoric, and failed negotiations.

When the first tariffs were applied in early 2018, analysts believed that a deal would be worked out quickly, as neither country would want to go through the economic pain of a prolonged dispute. However, we are now approaching the end of 2019, with no apparent resolution in sight.

With tariffs impacting both consumers and producers, many have called for a swift end to the tensions. Senate Majority Leader Mitch McConnell is one politician who has been outspoken about his wishes for the executive branch. He said this week that the trade war has been “tough”, and that he hopes “we can get a conclusion to this sometime soon”.

Mitch McConnell Says Trade War is Hurting Farmers

McConnell, a Kentucky Senator and leader of the Senate majority, spoke to NBC early this week, telling the network that the trade war has been “tough” for all farmers. China is a major consumer of U.S. agricultural products, particularly pork and soybeans. Farmers have been devastated by Chinese tariffs and periods of complete block-out in the Chinese market.

McConnell said in an interview that “I’d sure like for it to reach some resolution soon. It’s been very touch on American agriculture. I hope the President can get a good outcome here.”

While the Senator would prefer an end to the tensions, he’s not asking the executive branch to compromise on key issues. He acknowledged in the interview that China isn’t “playing by the rules”.

According to agricultural data, farm goods sales to China dropped 72% in 2018. The government has approved relief packages for some producers, but they don’t offset the losses.

Why Are We Still Waiting for a Trade Deal?

America has asked China for key provisions moving forward. According to reports, all existing tariffs must stay in place to make trade fairer, and China should provide protection for intellectual property belonging to American companies. The government also wants to see better operating conditions with fewer barriers to trade and business.

China has so far failed to produce guarantees.

While the trade war is clearly necessary to balance the deficit, there’s no denying that it will hurt American producers for as long as it is ongoing. Whether or not this justifies the outcome will depend on when a trade deal is signed, and the details that are contained within it.

 

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The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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