Tyner: 'Lose-Lose' Situation Brewing With Trump Tariffs

Posted: Updated:
(Image of Wally Tyner courtesy of Purdue University.) (Image of Wally Tyner courtesy of Purdue University.)
WEST LAFAYETTE -

Purdue University agricultural economist Wally Tyner says $12 billion in recently-announced federal aid for farmers will not offset the long-term damage if a series of international tariffs levied by President Donald Trump stick around. Tyner says barriers created by the tariffs and the ensuing retaliatory measures from trading partners like China, Mexico and the European Union are a "lose-lose" situation for all involved. In an interview with Inside INdiana Business, Tyner says if trade disagreements can be solved within a year -- which is the length of time the emergency aid is designed to cover -- the negative effects will be minimal.

The Trump administration's main target of the trade dispute is China, which Tyner says stands to suffer equal economic consequences. More specifically, Tyner says, the aim is to fight intellectual property theft in China that has gone unchecked for years. He says the issue needs to be taken on, but tariffs are not the way to do it.

The agricultural part of the tariffs focus on commodities including corn, soybeans, pork, beef and wheat. Indiana is one of the highest-volume soybean, corn and swine producers in the country. "The interesting thing to me is that the economic well-being of the United State goes down, but the economic well-being of China goes down, as well. They each go down about the same: $2.6 billion a year for every year the tariffs are in effect, so this one year payment -- which is certainly, at least in part, politically-based -- does not do anything about the long-term impact," Tyner said. "Who's the winner? Brazil." He added that the South American nation would gain some of the expected 13 percent dip in U.S. production from the tariffs.

Tyner says the only way the current strategy could be effective for the long-term is if the tariffs force trading partners to the table to re-consider existing agreements, but "not if the tariffs stay." On Wednesday, Trump met with European Union President Jean-Claude Juncker and in a joint statement, the leaders said the U.S. and EU will "work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods."

Tyner concluded by saying "these kinds of trade barriers are lose-lose. The American consumer is going to lose. The Chinese consumer is going to lose. It's in the interest of the United States to do everything we can to solve this trade issue."

The Trump administration's main target of the trade dispute is China, which Purdue University agricultural economist Wally Tyner says stands to suffer equal economic consequences.
  • Perspectives

    • Wojtowicz founded Indianapolis-based Cambridge Capital Management Corp. in 1983.

      Fixed, Long-Term Interest Rates Protects Against Rate Hikes

      A Hoosier small-business owner recently told his banker that, “Interest rates are as low as they ever will be” in the foreseeable future, and he wanted to get a loan with a “friendly” rate. The Fed made that official recently when it indicated  another quarter-percent rate hike will likely occur in December.  Most pundits expect there to be  three more rate hikes in 2019. Small-business owners are under pressure to act if they are considering...

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Rolls-Royce in Indy Selected For $100M Contract

      The U.S. Department of Defense has awarded a contract worth up to $100 million to Rolls-Royce Corp. in Indianapolis. The contract is related to Phase I of the Advanced Turbine Technologies for Affordable Mission-Capability program for the U.S. Air Force.

    • WOWO Names 'Morning News' Host

      The program and news director of WOWO radio in Fort Wayne has been named host of the station's morning show. Kayla Blakeslee will lead Fort Wayne's Morning News, succeeding longtime host Charly Butcher, who passed away in August. Blakeslee has served has the station's program director for the past two years, and previously served as news director and afternoon anchor. She led the station's "Penny Pitch" campaign in 2017, which earned a Service to America award from...

    • USA Gymnastics Interim CEO Resigns

      Just four days after being appointed interim president and chief executive officer of Indianapolis-based USA Gymnastics, Mary Bono has resigned. In a statement released Tuesday, Bono said her decision "comes in the wake of personal attacks that, left undefended, would have made my leading USAG a liability for the organization." Bono, a former congresswoman and principal at Faegre Baker Daniels Consulting in Washington D.C., drew criticism for a...

    • $25M Behavioral Hospital Coming to Central Indiana

      Danville-based Hendricks Regional Health is partnering with US HealthVest to develop a stand-alone behavioral center on the Hendricks campus in Plainfield. Known as the Indianapolis Behavioral Hospital, the facility will provide specialized inpatient and outpatient mental health care to patients of all ages.

    • Wesemann Hall at the Valparaiso University Law School (photo courtesy Tony V. Martin/The Times of Northwest Indiana)

      Valpo School of Law Transfer Denied

      A proposal to transfer Valparaiso University's law school to another university has been shot down. The Tennessee Higher Education Commission has denied the transfer to Middle Tennessee State University, which would have led to the creation of a College of Law at the school.