CLARKSVILLE, Ohio — Farmers like Dale Settlemyre in Clarksville are feeling the impact of the ongoing trade war between the United States and China.
Settlemyre grows soybeans, the largest agricultural export in the country. He said when U.S. tariffs on Chinese exports spiked in April, China retaliated with its own tariffs and stopped buying soybeans from the U.S.
"Our board of trade prices is less because demand has been reduced," Settlemyre said.
According to the Ohio Soybean Association, China is the top buyer of U.S. soybeans by a wide margin.
However, profits for farmers have dwindled now that China is buying from other countries like Brazil and Argentina.
Watch how the U.S.-China trade war is affecting Clarksville farmers in the video below:
"They can go to South America and buy the soybeans and pay 30% less, which is a considerable percentage," Settlemyre said.
Settlemyre said he's concerned that South American countries will continue to build their infrastructure and, in turn, China may keep buying from those countries.
"It'll be cheaper for them because they can get to the west coast, and that's a direct shot to China," Settlemyre said.
He said he's still selling his product to other countries, but his profits have taken a hit.
We wanted to learn more about the broader impact this trade war has on Ohioans. We spoke to Darrin Wilson, a professor at Northern Kentucky University who teaches public budgeting and finance.
"By now, historically, China would have already placed orders for those soybeans, and as of today have yet to do so," Wilson said.
Tariffs have come down from their April peak.
According to the Peterson Institute for International Economics, as of late August, China had roughly 32% tariffs placed on American goods, while the U.S. had nearly 58% tariffs on Chinese goods.
Wilson said trade talks aren't looking promising.
"There's not going to be relief for farmers anytime soon," Wilson said.
He said the situation is raising anxieties for farmers.
"To some extent, if this is a long-term problem, (it will) really put soybean farmers' livelihoods at stake," Wilson said.
Wilson said it's not just farmers who could be affected. It could also make a significant impact on the revenue the state earns from exports.
"It's really going to negatively impact everyday people of Ohio," Wilson said.
In the meantime, farmers like Settlemyre are hoping the dust settles soon.
"Hopefully, we can figure out a way to work together instead of working against each other," said Settlemyre.
