Trade War Impact

WAAY 31's Pat Simon sheds light on just how the trade war is affecting North Alabama.

While the u-s and china have seemed to call a temporary truce in the high stakes trade war - the impact of beijing's retaliatory tariffs is still being felt here in north alabama.

According to the u-s chamber of commerce - more than 560- thousand alabama jobs are supported by trade.

And an astounding 3.3 billion dollars in alabama exports are threatened by chinese tariffs.

I took a closer look at the impact on some of those - stuck in the middle of the existing trade war - with jobs on the line.

Nats here at tate farms in meridianville - "when does the season start?

Oh it will start the first of april."

Cotton has been a way of life for generations.

"it's a lifetime dream for me to be a part of this."

Mike tate has invested millions of dollars into his family's operation "very expensive" - and for a while -- business was actually cranking up - nats cranking the engine - that is - until president trump announced high tariffs against one of our major trade partners china - a country tate desperately relies on to purchase his top crop.

Mike tate - partner - tate farms "when we first heard about it, it was like oh no not now.

Not when we have things going our way and then this happens.

Pat: did you feel a punch in the guy?

Tate: a little bit.

That's exactly right."

Tate estimates that china's retaliatory tariffs against u.s. products has cost his farm hundreds of thousands of dollars.

It's a struggle - but he is willing to tough it out.

Mike tate - partner - tate farms "it is business.

It is good business.

We need to have trade deals that are more free and more fair."

Mitt walker - director - alabama farmers federation "the way the farm economy goes has a direct effect on the overall impact of this state."

Mitt walker is the director of the alabama farmers federation.

He points to these figures - millions of dollars in exports of alabama commodities like poultry - cotton and soybeans - going to china.

But when it costs more for farmers to export - that could negatively impact all of us locally.

Mitt walker - director - alabama farmers federation "when you think about feed, seed the purchases of food transportation electricity all of things that ho into producing a crop have a trickle down effect the gas stations the grocery stores."

Alabama ag exports total ag exports in 2017 was $1.25 billion poultry - $347 million cotton - $209 million soybeans - $76 million a way to bypass china - is find new trade partners.

The president recently signed the new mexico- canada trade agreement - which opens up alabama farmers to new markets/ standip but finding a new market is not necessarily an option for global companies like ad tran here in huntsville.

Your ability to communicate on your phone - the internet - and stay connected - is dependent on what they produce here - using high priced chinese parts.

Nats "beep" security door gerry kelley - ad tran director of global operations.

"at this point in time, it's a cost you have to bare."

Ad tran executive gerry kelley invited me inside operations - where the recent trade was with china is literally playing out inside these computer boards.

Nats ad trad made the decision to bite the bullet - paying for higher prices chinese components - becaause it's hard to them elsewhere.

Gerry kelley - ad tran director of global operations.

"we're building volume so for those items it would be difficult it would be difficult.

You;d have trounle building at the quantities necessary."

Nats .

Kelley says it's about staying competitive and keeping their company's clients safe from cyber threats without passing the higher chinese price on to them.

Nats keeping the assemnly lines rolling during a trade war means saving 15-hundred huntsville jobs.

Regina mckinney - ad tran employee "anything that affects the country affects me."

For regina mckinney who has been working here for 20 years - that' commitment is a lifesaver.

Regina mckinney - ad tran employee "it's good to have a company like this that's doing everything they can to keep us employed."

Nats keeping her and others employed may be a bit easier - now that the worst of the trade war may be getting behind us.

Recently - the us and china - signed a phase one trade deal - which reduces costs for chinese products - while promising farmers china will spend billions of dollars on commodities.

But before we get too excited - walker says we need to be cautious.

Mitt walker - director - alabama farmers federation "a lot of the reason why we have been in this situation with china is that they have not always held up to what they committed to, so i think enforcement is going to be extremely important to this agreement to make sure they follow through to those commitments."

In huntsville - pat simon - waay