Statement by Steve Nelson, President, Regarding President Trump’s Announced Steel and Aluminum Tariffs

LINCOLN, NEB. – “Today’s irresponsible action by President Trump to place tariffs on imported steel and aluminum puts Nebraska farmers, ranchers, and consumers on the front line of a possible global trade war. The casualties of this conflict will unfortunately be the pocketbooks of all Americans.”

“Even with the exemption of Canada and Mexico, Nebraska risks more than $3.72 billion dollars in agricultural exports, or 58 percent of Nebraska’s total export market.”

“While we anticipate retaliatory measures to be both strategic and overtly political, markets that Nebraska farmers and ranchers have worked hard to build and maintain should not be victims of President Trumps misguided attempts to correct our nation’s trade imbalance.”

“This is not just about farmers and ranchers. U.S. consumers also stand to pay the ultimate price in both lost jobs and higher priced goods that rely on a steady supply of imported steel and aluminum.”

“With more than 30 percent of U.S. gross farm income depending on agricultural exports, and with so many farmers and ranchers riding the line between profitability and economic calamity, today’s action only serves to destabilize the agricultural economy further.”

TRADE FACTS
By: Jay Rempe, senior economist

Nebraska Risks from Retaliation on U.S. Tariffs on Steel & Aluminum

Top 5 Steel Suppliers to U.S.                      Top 5 Aluminum Suppliers to U.S.
Canada                                                                    Canada
Brazil                                                                         Russia
South Korea                                                           United Arab Emirates (UAE)
Mexico                                                                      China
Turkey                                                                      Bahrain
Total value of exports of agricultural goods in 2016 from Nebraska $6.4 billion (USDA ERS)

Top 6 markets for Nebraska agricultural exports (2016, USDA ERS):
Mexico            $1.46 billion                 23%
Canada           $1.22 billion                 19%
Japan              $695 million                 11%
EU                   $695 million                 11%
China               $471 million                 7%
S. Korea          $413 million                 6%

Exports to Mexico, Canada, and China are most at risk from trade war over steel and aluminum imports, but Japan is also in the top 10 countries exporting steel to the U.S.