Des Moines, Iowa – Iowa Senator Chuck Grassley is issuing a warning about the dangers of an escalating trade war with China.
The Smoot-Hawley Act of 1930 raised tariffs on goods imported into the U.S. by 20 percent and sparked retaliatory tariffs from other countries on U.S. goods.
According to Grassley, half the world lived in poverty after World War II, but reducing tariffs and promoting international trade have led nearly 50 percent of the world’s population to be classified as “middle class” today.
Grassley, a Republican, made his remarks to the National Association of Farm Broadcasting.
Fellow Republican Joni Ernst, Iowa’s other U.S. Senator, says Iowa farmers will suffer “permanent damage” if they lose access to the Chinese market.
President Trump began imposing tariffs last year and is threatening to impose a 25 percent tariff on another 325-billion-dollars in Chinese goods next month if there’s no deal. Trump also has promised 15 billion dollars in federal aid to farmers to compensate for trade-related losses.