MOLINE- Farmers' fears are growing over the controversy surrounding tariffs with China.
Investment Advisor Mark Grywacheski joined us Monday, July 9, for Your Money during Good Morning Quad Cities.
Due to the tariffs President Donald Trump put into effect Friday, July 6, China has retaliated by putting tariffs on American products like soybeans. Grywacheski says farmers should expect lower demand and lower prices for their products, but companies like Deere & Company and Caterpillar are really getting hit hard on both sides of the dispute.
"On one hand, U.S. tariffs on imported steel and aluminum increase their price of manufacturing costs," he said Monday. "On the other hand, China's tariffs on U.S. manufactured goods, reduces Chinese demand for their demand."
Grywacheski says Deere & Company is more vulnerable to the tariffs with their significant ties to the farm industry. As farmers profits decline, he says they'll have less money to buy farm machinery and equipment.
Tuesday, July 10, Deere and Company Global Public Relations Director Ken Golden said, "Deere continues to support free and fair trade policies both for the company and for our customers. As we continue to monitor the trade policy decisions closely, we are hopeful for a timely resolution that is beneficial to the global agriculture and manufacturing economy."