How tariffs are impacting food suppliers
The Trump administration's trade war with China is poised to impact more than just smartwatches and TVs, but also the food and agribusiness industries as well.
CBS News reported that agricultural products like lobster, nuts and wine have been hit by China's retaliatory tariffs. Del Monte Foods recently said it's closing U.S. plants and laying off hundreds of workers in part to cut higher costs, some of which are tied to tariffs. Food manufacturers laid off nearly 16,000 workers in the first seven months of the year, up 85% from a year ago, CBS News reported in a report from outplacement firm Challenger Gray & Christmas.
CBS News noted that China's import cuts of U.S. agricultural products such as soybeans and corn has not only strained American farmers, but has led related agribusiness companies such as Deere & Co. to cut production by 20% in the second half of 2019, including large John Deere tractors made in Illinois and Iowa.
About 57% of consumers said they are concerned about tariffs raising prices on holiday goods, Coresight Research found in surveying 1,784 U.S. consumers last month. When asked what those people would do if prices were to go up, 22.5% said they would buy fewer items, while 22% said they would switch to a cheaper retailer. According to CNBC, the reports also states that 70% of consumers said they would still spend the same amount of money and not increase their spending to keep up with the price hikes, meaning they would likely end up buying fewer goods.