Saturday, April 07, 2018

The Soybean and Grain Embargoes

I remember Jimmy Carter's embargo on grain exports to the Soviet Union.  IIRC farmers didn't like the later, and it played a role in Carter's defeat.  Until I googled, I didn't remember Nixon's embargo on soybeans which was part of his economic maneuvers against inflation, etc.   Earl Butz ate crow over it, according to this piece.

Problem for Trump is that farmers know that patterns of trade can change.  If China puts tariffs on soybeans and switches to other suppliers, even if a trade war is averted, or quickly settled, the effects may be long lasting. 


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