Global Trade Tension: Concern brewing over impact of tariffs on US coffee exporters
Updated 14:37, 13-Aug-2018
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Washington is one US state which has reasons to be particularly concerned about the ongoing global trade crisis. The north-western state shares a border with Canada and stands to lose out in a big way if the situation continues to escalate. CGTN correspondent Phil Lavelle reports from the city of Bellevue.
PHIL LAVELLE BELLEVUE, WASHINGTON STATE "You've got him on one side. You got him on the other. And stuck in the middle - coffee. One of Washington state's biggest selling points, right now one of its biggest weaknesses."
BRIAN KELLY BUSINESS & ECONOMICS PROFESSOR, SEATTLE UNIVERSITY "We roast coffee in Seattle - we send it across the border."
And that's why think of coffee, think of Seattle. Home to the world's most famous coffee house. And thousands of others. Big business here.
EMANUELE BIZZARRI OWNER, CAFFE UMBRIA "In about a year, we're gonna lose about $250,000."
A big worry too - because Washington's got a 58-million-dollar-a-year coffee export market in Canada. And it's getting hit hard by 10 percent tariffs, imposed in July.
EMANUELE BIZZARRI OWNER, CAFFE UMBRIA "It is worrisome."
Roasted coffee, that is. The stuff Emanuele manufactures - and sends across the border.
EMANUELE BIZZARRI OWNER, CAFFE UMBRIA "The Canadian market is actually growing."
Coffee comes in from all over the world. It's roasted. It goes out globally. China and Canada - two big markets, both pretty precarious now. Emanuele may have to take drastic action.
EMANUELE BIZZARRI OWNER, CAFFE UMBRIA "We do want to move some of our production into Canada and become local since we already have offices over there and we do want to probably incorporate into Canada and become a Canadian company with two years' worth of fees that I would pay, I could open a small operation in Canada."
PHIL LAVELLE BELLEVUE, WASHINGTON STATE "Coffee is only part of the story here. Take into account Washington's other exports - everything from concrete rods to aluminum, that number heads toward 630 million dollars. And remember, right now, we're only talking about exports to Canada. You add the likes of China, Europe and Mexico to the conversation, it becomes 6.2 BILLION dollars' worth of goods. Making Washington one of the most vulnerable states in the country."
BRIAN KELLY BUSINESS & ECONOMICS PROFESSOR, SEATTLE UNIVERSITY "The United States has picked fights with everyone."
Other states vulnerable to "extremely significant damage" according to the U.S Chamber of Commerce: Idaho, South Dakota, Alaska, Louisiana, Alabama and South Carolina. And their export of everything from perfumes to playing cards, motorboats, lawnmowers and refrigerator freezers.
BRIAN KELLY BUSINESS & ECONOMICS PROFESSOR, SEATTLE UNIVERSITY "The problem is that I don't think the Trump administration has an end game. I think that they're playing it by ear and they simply don't know where they want to end up. So right now, it's a lot of bravado. But it's harmful bravado with no escape hatch."
And so, businesses like this carry on with their work, worried over the next moves. While politicians talk and argue in this high stakes game with no obvious winner. Phil Lavelle, CGTN, Bellevue, Washington State.