The United States stock market fell early Wednesday, but by the end of trading yesterday, it did pretty well, and closed in the positive. Yesterday’s fluctuation was in response to a proposed $50 billion Chinese tariff on U.S. goods, that raised some fears of a global trade war. Economist Jeremy Hill, director for the Center for Economic Development and Business Research at Wichita State University, says the tariffs are an aggressive negotiation tactic, but he also notes that there is no need to worry about a trade war yet. Some major industries in Kansas that could be affected by the tariffs include agriculture and aerospace. Brian Middleton, President of Aero-Spaces LLC and D&O Engineering, says that the aerospace industry though, is relatively stable. Boeing, one of the biggest companies to face direct effects, has a five to seven-year backlog on their single-aisle aircraft. He says only 1.7% of Kansas’s aircraft exports go to China, and it would take a long time for any effects to be felt here. Kansas farmers could also see effects. Soybeans, wheat, and corn are all on China’s list of American goods that could face a 25% tariff. Kansas exported more than 400-million dollars worth of soybeans to China last year. But even there, experts say China will still buy the commodity from the U.S. even if tariffs are implemented. They say China uses a lot of soybeans, they need soybeans, and they want soybeans. Because there’s only so much soybeans in the world, they’re going to get them one way or another. Kansas farmers could see losses with other crops like wheat and corn, but even those would be minimal according to experts.
Source: VNC News