In response to President Trump’s 25 percent tariff placed on Chinese goods totaling about $50 billion, China has placed a 25 percent retaliatory tariff on Friday. A local cotton farmer of more than 40 years responded Monday, regarding his concerns over what this trade war could bring.
“I watch the futures market real close and the cotton market of course has been fluctuating because of the dry weather and rain or no rain and the threat of tariffs,” said Doug Hlavaty, a local cotton farmer.
Currently, cotton is at a good price due to the demand for it, and the rough weather conditions making it less available. But Hlavaty says it’s only a matter of time before this changes.
“But the way I look at it is this. If we don’t do something now, it could be worse later. China has enough control already and we need to take some of the control for the American Farmer,” said Hlavaty.
Dan Epstein, a political science instructor at Texas Tech University doesn’t believe the tariffs will have a huge impact in the short term, but is merely a tool to hit the Trump administration where it hurts.
“Certainly the Chinese government is looking for those parts of the country, those districts, that they think have the biggest support for the Republican party and saying ‘aha’ we think maybe we can get Trump to back down and if we impose that hurt particularly on agricultural producers,” said Epstein.
While he doesn’t believe this trade war will impact farmers in the short term, over time he predicted long-term consequences.
“If every year, prices are about six or seven percent lower because these tariffs are going on… that’s not a really good prospect for the future of West Texas cotton,” said Epstein.
“I do worry, i’m not going to lie,” but Hlavaty said during the time he’s been in the business, everything has always worked out.
