KDSN RADIO News
Survey shows Iowa factories and farms suffering under trade tariffs
(Radio Iowa) The latest survey of supply managers in Iowa and eight other Midwestern states shows the economy sagging under the weight of retaliatory tariffs, as the region’s manufacturing sector sheds jobs for the sixth straight month.
Creighton University economist Ernie Goss says the September survey indicates many farmers are in for a difficult harvest season as the Trump administration tariffs are backfiring with one of the biggest trading partners.
“China just purchased soybeans from Brazil,” Goss says. “Now, they have not bought U.S. soybeans since May. That’s very unusual. They’re retaliating against our agricultural sector and they’re retaliating against other sectors. And they’re not the only one.”
A year ago, China bought about 60-percent of all U.S. soybean exports, and is now buying none. As a result, soybean prices are plummeting as Iowa growers are seeing per-bushel prices at one-third of what they were last fall.
Goss says the Creighton survey shows both imports and exports weakened during September, while wholesale prices rose from August and stayed at elevated levels.
“Four out of five of our supply managers indicated that tariffs were pushing up prices,” Goss says. “Obviously, that’s not good. Inflation’s above the fed’s target.”
Hiring is down significantly and the survey shows the Midwest region lost 3,800 manufacturing jobs in the past month, while Goss says the U.S. lost 78,000 manufacturing jobs.
“We’re losing jobs, losing manufacturing jobs,” Goss says, “and I know I’ve raised my voice there, but we need to raise our voice about what’s going on in manufacturing because manufacturing and agriculture depend heavily on trade, and trade is not good right now.”
According to the U.S. International Trade Administration, Iowa’s manufacturing sector exported $8.4 billion in goods for the first seven months of this year, compared to $9.3 billion for the same period last year. That’s a drop of more than nine-percent.
