Chuck Grassley on Trump's trade plan: 'If he's not successful, it could be a catastrophe'

Brianne Pfannenstiel | The Des Moines Register

Show Caption Hide Caption 'If he fails it could be a catastrophe' Sen. Grassley on Trump tariffs 'If he fails it could be a catastrophe' Sen. Grassley on speaks on Trump tariffs

AUDUBON, Ia. — Sen. Chuck Grassley told Audubon residents Tuesday that he and other Iowa leaders have President Donald Trump’s ear on trade, though he said it remains to be seen whether they can affect policy outcomes.

“We have the ear of the president because I’ve been involved in three group meetings with him — mostly from Midwestern senators,” Grassley said in response to a question on trade at a town hall meeting here Tuesday afternoon.

“I just want to say that we do not want federal aid. We want trade,” one farmer pressed Grassley, referencing the $12 billion in aid to farmers the Trump Administration has proposed.

That aid money is intended to help cover losses incurred by farmers since the start of the trade war; U.S. soybean prices have fallen by about 20 percent since March, when Trump first levied U.S. tariffs on steel and aluminum imports, prompting retaliation from China and others.

Grassley and other Iowa Republican leaders have tried to strike a careful balance as they address the issue — working both to back the president while acknowledging that Iowa farmers are feeling increasingly anxious about the effects on their bottom line.

“If (Trump’s) successful, then it’s better for all of us,” Grassley said Tuesday. “But if he’s not successful, it could be a catastrophe. And if you’re getting, like at New Hartford, $3.25 for your corn, it’s a catastrophe already, considering you got $3.75 before the tariffs went on.”

In speaking with reporters, Grassley said it’s “impossible” to say how long farmers can wait as Trump negotiates for better deals. They do need to see some progress — whether that’s negotiating a new deal with Mexico by the fall or signing new agreements with the European Union — to alleviate some concerns, Grassley said.

“There’s still going to be anxiety about China and particularly for soybeans, as an example,” Grassley said. “But some of this stuff, if they can see the president making some progress, (that) will be very helpful.”

He said the tariffs potentially could have lasting effects on farmers and their businesses.

“They’ve developed markets, and when you have these tariffs put on and China goes someplace else to buy their soybeans, then that relationship that this American farmer’s had with China is gone,” he said. “And it may take a long, long time to get it back. It isn’t going to happen just because the tariffs go off.”