Alternatives to Leverage Reaction to President Trump’s use of tariffs to leverage needed changes in Chinese behavior is notable for the two political reactions in Capitol Hill: 1) get China to change its behavior, and 2) we don’t like the use of tariffs. China believes that its fundamental success depends upon catching up technologically, enabling its politically powerful state-owned enterprises and controlling the South China Sea. It is unclear whether even the president’s sharp increase in tariffs this Friday is sufficient to compel Beijing’s capitulation, but relying on mere honor was insufficient to enforce China’s 2011 commitment to not militarize the South China Sea. WTO members largely reacted ne...
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...