Experts say that between 50 and 60% of American wool is generally dispatched to China, which treats the raw material in wire, fabric and clothing.
Some sheep producers are affected by the American-Chinese trade war in the form of an unsold wool.
According to the American Shew Industry Industry Association, a large part of wool – around 50 to 60% – is generally exported, China serving as a buyer and the main transformer.
Below Trump administration trade policies, there is now a tax rate of 145% that Americans must currently pay for Chinese imports. In response, China has increased its levies on imports of American products at 125% this month.
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President Trump’s prices on China weigh on American wool industry, some American sheep producers saying that their exports are now tangled in the trade war. (Kennedy Hayes / Fox News / Fox News)
Some American farmers say that their exports were taken in geopolitical cross fires.
Mike Harper has a family fattening park in Eaton, Colorado, called Harper’s Feeders. Harper said that his fattening park had a capacity of 65,000 sheep heads, but that work has become much more difficult.
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“I saw this industry only shrink, from the moment I was a young boy,” said Harper.
Already working under high entry costs and tight margins, wool producers are now struggling with additional losses linked to new prices.
A Colorado breeder claims that the increase in input costs – combined with export uncertainty exerts pressure on its net profit this year. (Kennedy Hayes / Fox News / Fox News)
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“Losing seven dollars per head on your inventory is substantial,” said Harper. “We are still counting more on meat trade – this is the value for us – but everything is added.”
The American Sheep Industry Association says that certain expeditions have already been organized earlier this year, but when China’s prices have been reintegrated, certain containers have been interrupted or reacted.
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Peter Orwick is the executive director of the American Sheep Industry Association (ASI), which is “a national organization representing the interests of more than 100,000 sheep producers located across the United States, east to west, herds based on pasture to spoil operations”, according to the association’s website.
Industry experts say that with prices now disturbing supply chains, the impact is particularly hard in the main woolen producing states such as California and through the West mountain. (Kennedy Hayes / Fox News / Fox News)
“We had sales that were created this spring,” said Orwick. “But if you did not have ships on the water, they were going to face the reprisals – so I know that we had containers that do not move.”
According to the association, California and the Mountain West states explain most of the country’s woolen production.
Meanwhile, China being the best woolen processor in the world, American wool is often sent abroad to be transformed into wire, fabric or clothing, a large part of which is sold later to American consumers.
Orwick explained that the domestic sheep industry has been under economic pressure for years, experts noting that the prices imposed in 2018 have brought an early blow. ORWICK said the decline has deepened during the pandemic when remote work has reduced the demand for wool -based formal clothing.
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“You combine this with the pandemic and the reduced request for office outfit,” said Orwick, “with the advent of these reprisals, it will be more difficult.”
Orwick said American producers are now looking for alternative buyers, especially in Italy and Eastern Europe.
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President Donald Trump told journalists from the oval office on Tuesday that the overall price level imposed on China, currently 145%, would decrease considerably but “will not be zero” and said that a trade agreement with China could potentially “work very well”.
