The State-level Burden of the Trade War: Interactions between the Market Facilitation Program and Tariffs
The costs and benefits of the trade war are unevenly distributed across the United States. Looking at the raw impact on commodity prices, such as soybeans, we know that it disproportionately affects farmers in the Midwest. The Phase One Trade agreement between the United States and China promises substantial relief; however, we question if the Phase One targets are realistic (See “The Phase One Trade Deal: Projections and Implications” by Chad Hart and Lee Schulz in this issue). Thus, it is important to consider just how much is at stake for different states and the nation as a whole.