Chinese Tariffs

(Wikimedia Commons)
Lauren Chapman

Thursday night at the stroke of midnight, speculations became reality when the U.S.-imposed tariffs on $34 billion worth of Chinese goods.

Retaliatory Chinese tariffs have impacted trade of recycled material from Indiana and elsewhere. This problem could create an opportunity for Indiana – but at a cost.

Mexico and Canada have retaliated against the Trump Administration’s newest round of steel and aluminum tariffs. These new taxes could hurt states, like Indiana, that have supported the president.

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Today:  an extended conversation with State Senator Eddie Melton (D-Merrillville) about the 2018 General Assembly session just ended, a look at the upcoming short, special session next month, and a peek at what Melton may bring to the Legislature in 2019.  We also note what the Indiana Black Legislative Caucus has a  series of town hall meetings this month, including this coming Saturday in East Chicago.

A U.S. Department of Commerce document lists Purdue University research as a source for recommending a 24 percent tariff on imported steel.

When Purdue agricultural economics professor Thomas Hertel first saw the Trump Administration’s math, he had to check for himself.

“We quickly re-ran that experiment here and we get the same outcome,” says Hertel.

He created the Global Trade Analysis Project Model, referred to as GTAP, 25 years ago. The free database runs analyses on the impacts of tariffs and today has more than 17,000 users in 170 countries.

China’s newest list of proposed tariffs include one of Indiana's staple crops – soybeans – and would hit the Hoosier agriculture industry hard.

Purdue professor of agricultural economics Wally Tyner and colleague Farzard Taheripour studied the possible impact the tariff like the one announced would have on the U.S. Tyner says the 25 percent proposed tariff on soybeans would hurt the U.S. economy.