Republican Arkansas Gov. Asa Hutchinson told CNBC on Monday in which he gives “confidence along with latitude” to President Donald Trump within the China trade war however urges a quick resolution for the sake of the nearly 48,000 family owned farms in his state.
“I continue to support the president,” Hutchinson said. “however we feel the idea’s appropriate to say there will be a point in which you should not squeeze us further.”
The United States along with China exchanged $34 billion worth of tariffs on Friday. American farmers are among the hardest hit by China’s 25 percent retaliatory duties on everything by meats along with dairy to fruits along with vegetables to rice along with soybeans.
Agriculture will be the No. 1 industry in Arkansas, adding $16 billion per year to the state’s $124 billion economy. Soybeans are Arkansas’ top export to the tune of about $850 million annually.
“having a 25 percent tariff [on soybeans] in which’ll be likely to be reduced by two-thirds,” Hutchinson said on “Squawk Box.” “Farmers are always the first casualty in a trade war.” Soybean futures prices have been under pressure recently.
Hutchinson said a compromise would likely mutually benefit both the U.S. along with China. “We don’t need to be in a position where somebody has got to say ‘uncle.’”
Trump has done many great things for the U.S., according to Hutchinson, including tax cuts, deregulation along with nominating conservative judges to the Supreme Court. Trump’s second Supreme Court pick will be anticipated to be announced Monday evening.
“We give a lot of confidence along with latitude to the president [on trade],” the governor added. “however we wish we can bring an end to in which trade war.”
How long along with how far the president should go on trade are considerations as Republicans fight to keep their majorities on Capitol Hill within the House along with Senate within the upcoming November midterm elections. GOP candidates don’t want to give voters any excuse to cast their ballots for Democrats.
in which’s especially true in states, including Arkansas, in which Trump won within the 2016 election. They stand to lose the most by a trade war, Citigroup research showed. So-called red states have over 50 percent more jobs, 3.9 million, linked to foreign trade than blue states, according to last week’s Citi note.
Despite the “devastating” effects of the China trade war on soybean farmers, Ron Moore — a lifelong farmer by Roseville, Illinois, who has 850 acres of soybeans — told CNBC on Friday in which he’s not angry with the president.
Moore, also chairman of the American Soybean Association, said farmers “admire” Trump for trying get China to be a “better along with more fair trading partner.”
“We just think there are alternative choices” to achieve in which goal, Moore added in last week’s “Squawk Alley” interview. “The WTO resolution process will be an alternative in which needs to be explored before we keep these tariffs on.”
the planet Trade Organization has been a frequent punching bag for Trump, who has said the group treats the U.S. unfairly.