Afternoon Coffee: China Announces Retaliatory Tariffs, Iowa’s Soybean Farmers May Lose Up to $624M

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Another day, another step closer to a U.S.-China trade war. The Wall Street Journal reports that China has announced retaliatory tariffs “by targeting high-value American exports—including farm products, cars and crude oil.”

On Friday, the Trump administration had announced that it would impose 25% tariffs on $50 billion worth of Chinese products. In a tit-for-tat move, China will impose 25% tariffs on $50 billion in U.S. goods.

Brazil Trucker’s Strike Aftermath

Brazil’s nationwide trucker’s strike, which lasted 10 days last month, has caused the revenues of numerous multinational corporations to take a hit, the Financial Times reports. Unilever recently announced that its Q2 revenue would be reduced by approximately $174.1 million. AB InBev, Danone, Heineken and PepsiCo are among the large companies that have likely been affected.

Soybean Woes

Iowa’s soybean farmers may end up in the trade war crossfire. The state exported $14 billion in soybeans to China last year, and soybean farmers may lose up to $624 million as a result of the tariffs, the Des Moines Register reports.

Since the trade dispute between the U.S. and China began in March, U.S. soybean prices have already fallen by 12%.

McDonald’s Ditches Plastic Straws

McDonald’s announced that it will substitute plastic straws with paper straws in all 1,361 of its restaurants in the U.K. and Ireland by next year, the Los Angeles Times reports. In addition, the fast food chain will test alternatives to plastic straws in some U.S. locations this year.

This is despite the fact that last month McDonald’s shareholders had overwhelmingly rejected a proposal to look into alternatives to plastic straws, a top ocean polluter. In the U.S. alone, about 500 million plastic straws are used every day.

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