The newest ‘needle in a haystack’

Finding a “needle in a haystack” is one of the oldest analogies used to explain the difficulty in solving a problem. At times the phrase is used in a facetious manner—a way to say a problem cannot be solved.

The latest “needle in the haystack” question is trying to be solved by the Trump administration as the president tries to find a balance in trade, which has led to uneasy times from farmers and ranchers to those who supply them with the equipment and needs for them to do their job. Recent actions, most notably between the United States and China, has dominated the headlines and led off the nightly news broadcasts. Recent tariffs announced by the U.S. means it will levy tariffs on certain products. Those tariffs will collect an additional $12 billion; however, other countries are doing the same. Since U.S. agriculture is a net exporter of farm products, the tariffs imposed by other countries in retaliation will more directly impact them. It has really hurt sorghum farmers and hog producers who not too long ago found China to be a desirable consumer.

A tariff is a tax on consumers, said Rep. Roger Marshall, a Kansas Republican who represents the First District, at a recent Western Kansas Manufacturers Association-sponsored event. Consumers, like suppliers, hate taxes as it adds to the bottom line cost. Some businesses can temporarily pass on the cost and consumers have a choice to pay the higher cost or the more likely scenario is to back off on purchases.

The views shared from an agriculture-manufacturing perspective were enlightening. Most of those supported President Donald Trump’s approach in particular to bring China in line with past grievances that he believes have not been addressed with the caveat, “But…” meaning the long-term prospects of an extended trade war is beginning to worry those in the agriculture sector.

China has received the bulk of the headlines and criticism and yet those who study issue say getting an updated North American Free Trade Agreement is the most important step since Canada and Mexico are the U.S.’s two biggest trade partners.

In states where agriculture production drives the economy export markets are necessary.

It gets challenging when trying to write about tariffs. Even the subject becomes “the needle in the haystack.” Those who have been critical of the president find themselves being criticized.

The battle over trade policy is not a new issue. While NAFTA has been in place for more than 20 years our trade policy with China has been less defined. Until President Richard Nixon went to China in the early 1970s the U.S. and China had no trade history. As a result trade has developed without a formal policy other than the two recognizing each makes products the other covets. It is a reminder that trade policy should be discussed in a rationale manner.

The president believes tough talk will get other countries on board to “shape up.” The consumers in each country are going to decide how long the “needle in the haystack” riddle will last.