Flooding In Midwest, Huawei, China, EU Tariffs.. It’s Not Looking Good

It was announced this week that Trump will ease sanctions on Huawei following an 80 minute discussion at the G20 Summit. While some may find this a good thing, many others say not so fast. Huawei is not expecting that this means they will be allowed further access to the US market.

In any case, easing of such sanctions tends to negate the claims that banning Huawei had anything to do with national security.

Trump claimed some weeks ago that China had agreed to purchase more agricultural products from the US. There were no specifics given in that statement, true to form for Trump. This must be called into question with recent flooding in the Midwestern US, which has caused late planting of millions of acres of crops.

The fact is, many crops will simply not be planted at all this year. Most strains of corn take too long to reach harvest to bother planting at all at this date. Farmers may be able to plant other crops in some limited cases. Though much of that will be determined by whether weather permits, availability of seed, if their equipment is compatible with other crops, time to harvest for the alternative crops and other factors.

No matter what, with sanctions on goods from other countries, including agricultural products combined with extensive flooding, you can expect grocery prices to increase in the near future on top of the price of other products imported from China, Mexico, Canada and the EU.