Trump's tariffs against China will harm American farmers, workers, say economists
"We export a lot of agricultural products to China," Titman said. "If I were running trade for China, I would buy less soybeans from the U.S. and more from Brazil and Argentina."
Oil prices also retreated on Wednesday as trade tensions between the two countries dampened investor sentiment.
China on Wednesday hit back at the U.S. unilateral action with its own tariff plan. It unveiled a list of products imported from the United States worth 400 billion dollars that will be subject to higher tariffs. The items include soybeans, automobiles and chemical products.
Rashba said ordinary Americans have already tasted the bitterness of the ongoing trade tension.
China's Customs Tariff Commission has decided to impose additional tariffs of 25 percent on 106 items under 14 categories.
Steven M. Rashba, professor of business communication at the University of Bridgeport, said American farmers and workers are the ones to be seriously affected by the tariffs.
The U.S. dollar declined against most other major currencies in late trading on Wednesday. The dollar index, which measures the greenback against six peers, decreased 0.07 percent at 90.139 in late trading.
"The people who will truly suffer are American farmers and factory workers -- the people he (U.S. President Donald Trump) claims to be helping. The implications for the economy are enormous and frightening."
HOUSTON, April 4 (Xinhua) -- Economists in the United States are concerned that the rising U.S. protectionist trade policy against China will have serious impact on American farmers and workers.
Sheridan Titman, professor in the department of finance, University of Texas at Austin, said if the tension worsened into a trade war, it would hurt the U.S. agricultural sector badly.
The U.S. administration on Tuesday announced a proposed list of products subject to additional tariffs, which covers Chinese exports worth 400 billion dollars with a suggested tariff of 25 percent.