According to a report at Bloomberg, farm equipment manufacturers are now feeling the brunt of President Donald Trump’s disastrous trade war that has already devastated farmers as sales of new equipment have plummeted.
The report states that manufacturers are reporting an “annualized $900 million [loss] in the first quarter of the year” directly related to cash-strapped farmers.
Bloomberg reports that the drop is directly related to Trump’s policies and promises that have gone unfulfilled.
“The Commerce Department cited the drop in agricultural machinery purchases as a contributor to the paltry 0.2 percent quarterly rise in overall business spending on equipment, also the weakest performance since 2016” Bloomberg reports. “The softness in the category came despite promises by Trump and Republican leaders that tax breaks for equipment purchases in the party’s signature tax law would boost investment by farmers and manufacturers.”
Economic damage to both farmers and manufacturers could weigh heavily on Trump in states he will need as the 2020 election grows closer with every day.
“The fresh signs of financial pressure on farmers, local tractor dealers and the other suppliers that support them underscore the rising political danger the trade war presents to Trump as a negotiating team heads to Beijing next week for another round of trade talks. Lopsided support from rural areas was a key driver for Trump’s narrow 2016 victory over Democrat Hillary Clinton,” the report continues.
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