Heitkamp: As Canada Announces New Tariffs Against U.S. Goods, New Report Details Threat to ND Economy

Press Release

U.S. Senator Heidi Heitkamp today released the following statement after Canada announced new tariffs on U.S. goods following the administration's escalation of a trade war with North Dakota's largest foreign markets. The trade war threatens over $60 million in North Dakota exports, according to a new analysis released today by the U.S. Chamber of Commerce, which estimates that over 111,000 jobs in North Dakota are supported by trade.

"With each passing day, the administration's trade policies cause more concern in North Dakota and rural America, especially where farming, ranching, manufacturing, and energy production fuel the economy," Heitkamp said. "In nearly every conversation I have with North Dakota farmers and businesses, their top concern is a trade war and the uncertainty caused by alienating our closest trading partners with tariffs. These countries are North Dakota's biggest international customers, and when 95 percent of the world's population lives outside the U.S., we have to export our goods to succeed. Rural America can't afford a trade war, but we increasingly feel like collateral damage in this dispute. We need smart trade policies so North Dakota can continue to feed and fuel the world while supporting jobs and growing our economy."

The European Union (EU) recently responded to the administration's escalation of its trade war by imposing retaliatory tariffs on $3.4 billion in U.S. goods, including supply chain materials for agriculture and construction machinery, which accounts for 50 percent of North Dakota's exports to the EU. On Thursday, Mexico is expected to implement further tariffs of almost $3 billion worth of U.S. goods.

The administration's trade war with China has caused deep concern among North Dakota farmers, energy producers, and manufacturers, with a further escalation of the trade war likely later this week as China is set to impose retaliatory tariffs potentially on Friday on $34 billion in U.S. goods, including soybeans, which are a critical North Dakota export.

The U.S. Chamber of Commerce report released today detailed the value of North Dakota goods threatened by retaliatory tariffs already announced by our trading partners, including $31 million in exports to China and $25 million to Canada. Click here to read the Chamber's report on North Dakota.

"Tariffs imposed by the United States are nothing more than a tax increase on American consumers and businesses--including manufacturers, farmers, and technology companies--who will all pay more for commonly used products and materials," the Chamber report summarized. "Retaliatory tariffs imposed by other countries on U.S. exports will make American-made goods more expensive, resulting in lost sales and ultimately lost jobs here at home."

China's retaliatory tariffs target nearly all of North Dakota's agricultural exports to the country, and additional tariffs on soybeans are expected to be implemented later this week could cause soy prices to decline even further, hurting North Dakota farmers who are committed to the soybean crop they planted this spring.

China's retaliatory tariffs are also a big concern for North Dakota's energy exports. China, which has announced tariffs on U.S. crude oil, is the third largest buyer of U.S. oil, behind Mexico and Canada.

North Dakota manufacturers are already feeling the negative consequences of the trade war. Prices for raw materials have gone up, and uncertainty has clouded their business prospects.

The tariffs on American goods imposed by the EU come after the administration imposed tariffs on EU steel and aluminum, saying they were necessary for national security reasons. Heitkamp recently joined U.S. Senator Bob Corker (R-TN) leading a bipartisan group of eight other senators in introducing legislation to require congressional approval of tariffs designated for national security reasons. Heitkamp also cosponsored bipartisan legislation introduced by Republican U.S. Senator Jeff Flake from Arizona to nullify the aluminum and steel tariffs.

Background:

Heitkamp has continued to press for smart trade policies that support North Dakota's farmers, ranchers, and manufacturers by:

Pressing top officials since the beginning of this administration to protect and expand markets for North Dakota goods. Heitkamp has met with the U.S. Agriculture Secretary (USDA), U.S. Trade Representative (USTR), U.S Commerce Secretary, the Canadian ambassador to the U.S., and many other top U.S. administration officials -- many of them several times -- to explain that the U.S. needs smart trade policies to allow our farmers, ranchers, and manufacturers to reach new markets -- not tariffs, uncertainty with NAFTA, or hostility toward our top trading partners. In February 2017, when she first met with USDA Secretary Sonny Perdue, when he was a nominee for the position, the bulk of their conversation focused on trade.
Supporting bipartisan legislation to stop the tariffs. Heitkamp recently joined U.S. Senator Bob Corker (R-TN) leading a bipartisan group of eight other senators in introducing legislation to require congressional approval of tariffs designated for national security reasons. Heitkamp also cosponsored bipartisan legislation introduced by Republican U.S. Senator Jeff Flake from Arizona to nullify the aluminum and steel tariffs.
Outlining her agenda to strengthen and protect North Dakota's agriculture and energy industries. During a meeting with USTR Robert Lighthizer earlier this year, Heitkamp laid out her top four priorities to support North Dakota workers, farmers, and businesses by enabling them to export their products abroad, and recently spoke out against the administration's escalating trade war with China, which also threatens North Dakota's main industries -- energy, agriculture, and manufacturing.
Raising concerns about impacts of retaliatory tariffs on industries vital to North Dakota's economy like agriculture and manufacturing. Heitkamp recently toured WCCO Belting, Inc. in Wahpeton and heard firsthand the concerns the North Dakota manufacturer has about trade wars and its ability to export its goods. Over half of WCCO's sales are to international customers, making trade an essential part of its business model.
Speaking out against tariffs and uncertainty regarding NAFTA that would put the state's economy at risk. Heitkamp has met with farmers, ranchers, and manufacturers across North Dakota to talk about the need for smart trade policies that support North Dakota. She penned op-eds in March 2017 and again in April 2018 making the case. In February, she also did an episode on her podcast, The Hotdish, about NAFTA and the importance of trade for agriculture. For the episode, she interviewed the former U.S. agricultural trade negotiator and a North Dakota barley farmer.
Pressing for analysis about the impact of the administration's trade policies on small businesses. Heitkamp recently called on the U.S. Small Business Administration's (SBA) Office of Advocacy to analyze the impact of the administration's tariff policies on American small businesses. Small businesses represent nearly 99 percent of all businesses in North Dakota, and support nearly 60 percent of all jobs in the state, according to SBA.

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