Though the article is a bit lengthy, it is an interesting read on what happens when we get into a trade war with our major trading partners

Though the article is a bit lengthy, it is an interesting read on what happens when we get into a trade war with our major trading partners. Specifically, retaliatory tariffs led to a significant reduction in exports (agricultural) to partners who are also in the business of retaliating. For example, from 2018 to 2019 we lost more than $27 billion due to retaliatory tariffs. Most of the losses originated from China however we also lost from other trading partners such as Mexico, Turkey, and Canada. As the world’s biggest exporter of agriculture, we have suffered significant loss. If you can make your way to page 19 of the article, you will find the distribution of estimated annualized losses from these retaliatory tariffs. Page 23 highlights state rankings of shares of agricultural export losses starting with Iowa. Take a look at page 34, appendix 1. What do the authors state as a reason for tariffs and restrictions (Morgan, 2022)?

Reference:

Morgan, S., et al (2022). The economic impacts of retaliatory tariffs on U.S. agriculture. Retrieved from: https://www.ers.usda.gov/publications/pub-details?pubid=102979