Trump plans emergency aid to farmers affected by his tariffs

Ann Santiago
July 25, 2018

The White House plans to announce on Tuesday a plan to extend $12 billion in emergency aid to farmers caught in the midst of President Donald Trump's escalating trade war, two people briefed on the plan said, the latest sign that growing tensions between the United States and other countries will not end soon.

"President Trump must find a way out of this mess so that Iowa's farmers and manufacturers are no longer targets of this trade war." .

During a speech to the VFW in Kansas City, Mo., President Trump said his tariffs are already working, bringing nations to the bargaining table.

This will aid producers of soy, sorghum, corn, wheat, pork, dairy, fruit, rice and nuts, all products hit by tariffs imposed in response to USA action. America's farmers don't want to be paid to lose - they want to win by feeding the world.

"We're making tremendous progress", he said. "He was not going to allow them to bare the brunt of these illegal trade retaliatory efforts of the countries".

Options activity has been known to spike before the public announcement of market-moving news and the US Securities and Exchange Commission has pursued enforcement actions when the activity has been determined to be insider trading involving options.

"There may be some scope for Australian producers to pick up some of that [soybean] demand, on the other hand you've got American exports that were previously going to China that are likely being diverted to other markets as well", he said. "Just be a little patient". During a briefing, USDA officials said details would be released in the next couple of weeks.

"They're all aiming at anybody that likes me", he said.

In 1930, the United States raised tariffs dramatically to protect American industry, encouraging other countries to do the same in a global trade war that made the Great Depression worse.

In a written submission before Tuesday's hearing, the US Chamber of Commerce expressed its staunch opposition to tariff escalation, saying it would be US businesses and customers who would foot the bill of the "hidden, regressive taxes". Those affected economies have in turn targeted US agricultural products, including soybeans, dairy, meat, produce and liquor.

The Trump administration enacted a 25% tariff on roughly $34 billion worth of Chinese goods earlier this month and has another $16 billion pending ahead of a public hearing.

Plenty of congressional Democrats took aim at Trump, especially those representing states with large farm economies.

Sen. Ben Sasse, R-Neb., said the plan would spend billions on "gold crutches".

Trade promotion program, which is geared toward assisting in developing new export markets in conjunction with the private sector.

In response to steep tariffs imposed by the Trump administration, China has responded with tariffs of its own on American goods.

Both Johnson and Democratic Sen.

The move to cushion the blow for a politically important constituency - rural and agricultural states that supported U.S. President Donald Trump by wide margins in the election but have been targeted by China's retaliation to his trade tactics - was met with broad criticism by many farmers and farm-belt lawmakers.

Trump is set to visit Kansas City, Missouri, on Tuesday and will travel to IL and Iowa later in the week - all states that are beginning to see the impact of US and retaliatory tariffs. "It's as simple as that".

"The president is a tough negotiator, and I am confident that American agriculture will flourish because of trade relationships that are smarter, stronger and better than before", Perdue said in the June op-ed.

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