NCDC member Bill Krist, former Assistant Trade Representative for Presidents Reagan and Carter, authored the OpEd This trade war will crush Virginia’s farmers – Ninety percent of potash needed for fertilizer is imported, mostly from Canada, and this will now face a 10% duty., published in Cardinal News April 9. It is re-published below.
Our takeaway: That Congressmen Rob Wittman (CD1) stand up for Virginia’s farmers. He should do this by urging House Speaker Mike Johnson and other Republican members of the House to take back the power that is Constitutionally that of Congress as Krist describes so well. Contact Rep. Rob Wittman by calling (202) 225-4261.
President Donald Trump’s announcement that the U.S. would impose higher tariffs than we have had since the end of World War II has precipitated a dangerous trade war. American companies and consumers will be affected, but farmers are particularly in the crosshairs.
On April 5, a 10% tariff went into effect across the board on virtually all U.S. imports, and on April 9, “reciprocal” tariffs will go into effect on some 60 nations. China will be hit with a 34% “reciprocal” tariff in addition to existing tariffs already in place, while the European Union faces an additional 20% duty, and close allies like Japan, South Korea and Taiwan face additional tariffs of 24% to 32%. Even extremely poor countries like Madagascar (47%) and Botswana (37%) are impacted.
China and Canada have not wasted time in retaliating. Canada has imposed a 25% tariff on $155 billion imports from the U.S., and China has imposed an additional 15% tariff on American chicken, corn and other farm products and a 10% tariff on soybeans and fruit. The European Union has an extensive list of prospective tariffs on imports from America, including many agricultural items, that it plans to impose.
Farmers will also be hurt by some of the tariffs we are levying on our trade partners. Ninety percent of potash needed for fertilizer is imported, mostly from Canada, and this will now face a 10% duty. Craft brewers often rely on imported hops and barley.
Farmers will also be impacted by the shutdown of the U.S. Agency for International Development, which purchased $5 billion worth of agricultural goods to distribute in food aid to impoverished countries, including wheat, corn and vegetable oil.
Our farmers contribute some $70 billion to our state’s economy and agriculture is one of the most important sectors in Virginia. Agriculture also employs over 300,000 people.
Farmers need some certainty about tariffs and trade rules as they get ready to plant. Unfortunately, as things stand now, it is unlikely that the trade war with China, Canada and most other countries will be resolved soon.
However, there is a way to restore sanity to the chaotic trade situation. Under our Constitution, Congress has authority for trade policy. Article 1, Section 8 of the U.S. Constitution says, “The Congress shall have power to lay and collect taxes, duties, … to provide for the common defense and general welfare of the United States.” Further, it says, “The Congress shall have the power to … regulate commerce with foreign nations.”
President Trump is claiming unilateral authority to impose tariffs under the International Emergency Economic Powers Act of 1977, which authorized action in times of national emergency. Before President Trump imposed these tariffs, however, there clearly was no national emergency.
It is now way past time for Congress to reclaim its rightful constitutional powers. A number of Republicans in the Senate are standing up to this obligation. Republican Sens. Rand Paul and Mitch McConnell supported the recent bill by Sen. Tim Kaine to end the tariffs on our northern neighbor and good ally, Canada. And Sen. Charles Grassley, Republican from Iowa, has introduced legislation that would require tariffs to expire unless explicitly approved by Congress within 60 days.
These bills will go to the House, where Speaker Mike Johnson has threatened that they will never see the light of day. Virginia’s Republican Congressmen could work across party lines and bring these bills to a vote where they would likely pass.
It is now time for Congressmen Rob Wittman (CD1), Jen Kiggins (CD2), John McGuire (CD5), Ben Cline (CD6) and Morgan Griffith (CD9) to stand up for Virginia’s farmers.
William Krist served as assistant trade representative in the White House trade office under Presidents Reagan and Carter. He has also worked on trade issues as a legislative aide in both the House and the Senate, and he is the author of “Globalization and America’s Trade Agreements,” published by Johns Hopkins University Press. He also served as senior vice president for a leading high-tech industry association and has led consulting projects in a number of African nations related to economic development. He splits his time between Fairfax County and the Northern Neck.