Trade war under Trump could inflict major losses on California agriculture, economists warn

ECONOMISTS have warned that US President-elect Donald Trump’s proposed tariffs could trigger retaliatory measures, leading to significant losses for California’s agriculture industry, The Los Angeles Times reported on Sunday. A recent analysis, published by the University of California’s Giannini Foundation of Agricultural Economics, examined potential scenarios involving tariffs and retaliation.
If a major trade war were to erupt, the report said, California’s agricultural exports could decline by as much as 25 per cent, resulting in annual losses of up to US$6 billion. California’s agricultural sector generates billions of dollars from exporting products such as pistachios, wine, and other goods to countries including China, Mexico, and Canada.
The study also pointed to some of the most vulnerable commodities, including pistachios, dairy products, wine, and almonds, all of which are exported in large quantities to China.
Researchers from the University of California, Davis, and North Dakota State University identified these products as especially at risk in the event of a trade war. “The worst-case scenario is pretty bleak,” Sandro Steinbach, director of North Dakota State University’s Centre for Agricultural Policy and Trade Studies was quoted as saying. “Basically, tariffs are harmful to US agriculture, and to California agriculture in particular, because they will invite tariff retaliation.” — Xinhua

Source- The Global New Light of Myanmar