AgWeek

By Emily Beal 

U.S. Sen. Amy Klobuchar, D-Minn, spoke at Swing Barrel Brewing Co. in Moorhead, Minnesota, on Friday, April 11, about the current happenings in the U.S. government, particularly tariffs and the uncertainty they bring along with them.

“Not all tariffs are bad; however, the way this has been handled across the board has been a complete jolt to our economy, and particularly in rural America,” Klobuchar said.

President Donald Trump on April 2, announced he would impose a 10% baseline tariff  on all imports to the U.S. and higher duties on some of the country's biggest trading partners. Trump on April 9 announced he would pause tariffs on all countries other than China for 90 days.

Though China has been singled out in recent actions, Trump's rhetoric around trade since taking office in January has also focused on trade relationships with Canada and Mexico — the top trading partners for the U.S.

While Klobuchar explained how the trade war would impact many countries' relationships with the states, Canada is her top concern when it comes to Minnesota’s trading economy. Canada plays an integral role in Minnesota’s trading landscape, as it is the No. 1 trading partner for Minnesota. And statistically speaking, there is no second place.

“Canada is our friend,” Klobuchar said. “Canada eclipses numbers two, three and four. Canada is more than those combined for our state. So you can imagine that this major trade war going on with Canada is going to have an inordinate effect on the northern states that tend to do more business with Canada.”

A big topic in the tariff talk when it comes to agriculture has centered around soybeans. Mike Skaug, a soybean producer from Polk County, Minnesota, and past president of the Minnesota Soybean Growers Association, spoke at the event, noting that six years ago, Brazil and the U.S. were neck-and-neck when it came to soybean production. Now, Brazil produces 40% more soybeans than the entire country of the United States, he stated.

“That's how things snowball the other way. That's how it's going to be hard to recapture that type of thing,” Skaug said.

In addition, Skaug shed a light on how these tariffs impact the country’s farming operations from seeds to equipment and everything in between.

“We have seen soybean farmers like Mike facing volatility and uncertainty. Last Friday, the day after countries announced retaliation, soybean futures dropped 34 cents per bushel, and since there's been significant volatility in the market,” Klobuchar said

With the U.S. producing 30% more than what we use in all agriculture products, trading is a vital part of the nation's ag industry, Skaug said.

Local business owners are also being hit with waves of uncertainty due to tariffs. Sean Syverson, co-owner of Swing Barrel Brewing Company, agreed to host Klobuchar’s press conference to help get his story and many other small businesses’ stories out to the public on what they are facing due to the trade wars.

“It doesn't impact whether you have a beer in my place. What does matter is how these are affecting our business. It's the uncertainty. It's the instability that we face not knowing what our costs are going to be, when they're going to rise,” Syverson said. “There are so many, numerous variables that we just don't know, and that makes it really hard for a business of our size, because we do not have a surplus of money to gamble with.”