Deere Chairman and CEO Samuel Allen said on CNBC’s “Squawk on the Street” that the trade war could mean trouble for the global supply of agricultural commodities even after it’s over. He agrees with President Donald Trump that the Federal Reserve should stop hiking rates.
Deere Chairman and CEO Samuel Allen said on Wednesday that his main concern with President Donald Trump’s tariffs is the long-term effects it will have on the supply of agricultural commodities.
“We’re more concerned about the structural changes that it might force on the global supply of soybeans and other commodities,” Allen said on CNBC’s “Squawk on the Street.”
For example, if China were to seek out soybeans from another country like Brazil, those farmers could produce the soybeans quickly, which could lead to an oversupply over a longer period of time. That means the U. S. farmer will continue to be hurt by the tariffs even after they are lifted because of the surplus created by China seeking out substitute suppliers.
