The international trade war is heating up after new tariffs went live last Friday and another $200 billion worth were threatened on Tuesday, July 3. University of Montana Economics Professor and former Deputy Secretary General of the OECD Joanna Shelton explains where Montana will fill the economic hits.

"Basically Montana is a big big exporter of agricultural product," Shelton said. "We send $65 million a year of wheat to China. They now face a very high tariff on wheat coming into China and that is going to hurt our wheat producers. They are already facing price problems. It is same the same thing for soy beans, sorghum and all these agricultural products. Asia is a very big market, China is a big market and those are hurt."

The trade war is bigger than just the U.S. and China though, Canada is also getting into the mix and the number of goods and industries being effected is broadening.

"Canada has put high tariffs on plywood and Montana plywood exports" Shelton said. "Our wood products are now facing steep tariffs into Canada. China is hitting us with aluminum waste and scrap that we have here in Montana. For example, Jore Corporation up in my neck of the woods produces products for Asia and to the extent that goes to China that will be hit."

When asked if any sectors would be safe Shelton said “there are no sectors that are safe, the point of retaliation is to maximize pain.” Shelton also says she doesn’t believe China will back down in this fight, so it could have a long term impact.

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