Trump suggests no tariffs between US, Europe

Posted July 25, 2018

The Trump administration on Tuesday announced a plan to provide $12 billion in emergency assistance to farmers in Texas and beyond who are suffering from the effects of President Donald Trump's sprawling trade war.

Payments will be made to soybean, sorghum, corn, wheat, cotton, dairy, and hog farmers. "The President promised to have the back of every American farmer and rancher, and he knows the importance of keeping our rural economy strong".

Sasse, a Republican, represents thousands of farmers in the Cornhusker State, and said that his constituents "don't want to be paid to lose" but "want to win by feeding the world". Bob Corker (R-Tenn.) told The Washington Post.

Tobacco farmer David Phillips says, "There's not as much domestic consumption as there was at one time". China purchased $100 million of Washington cherries previous year, Sandison said. They're all coming to see us.

'He understands the farmers in this country feed us, they fuel us, they clothe us. "At the end of the line, producers are going to be producing them at a loss".

The administration announced the package weeks earlier than initially planned. He's felt the impact of the trade wars directly as milk prices plummeted again this year following a long downward slide.

Farm groups generally have stood by Trump during the trade war although anxiety has begun to rise in farm country.

The aid funding may also mean that Trump's trade war will be going on for some time. Interestingly enough, direct assistance will apparently come principally via the New Deal's Commodity Credit Corporation, a federal entity that needs no new congressional authorization in order to borrow billions from the Treasury and pay it out to farmers to "stabilize, support, and protect farm income and prices".

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The administration said it would provide up to $12 billion in short-term federal aid. This reaction from farm-state Sen. The Senate has several key races in agriculture-dependent states like Missouri, North Dakota, and in this November.

The Trump administration has also imposed tariffs on close allies such as Canada and the European Union.

Later this week, Trump will visit Iowa and IL, two other farm-belt states, as he seeks to shore up support for Republican candidates in those regions.

He said trading partners such as China and the European Union have deliberately targeted the US agricultural industry with retaliatory tariffs because they know it's the heart of Mr. Trump's political base. It's as simple as that - and everybody's talking!

But that provided little solace to rank-and-file Republicans, who said the tariffs are simply taxes and warned the action would open a Pandora's box for other sectors of the economy.

The moves have been unsettling to lawmakers with districts dependent upon manufacturers and farmers affected by the retaliatory tariffs.

Sen. Rand Paul, R-Ky., blasted the plan on Twitter.

Other Republicans backed the president.

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As just one example of how farmers are impacted, China used to import $1 billion worth of American-grown sorghum annually, which made up 77 percent of all US sorghum exports.

Speaking in Kansas City, Trump said his trade policy was producing "tremendous progress". "These programs exist to insure farmers against the vagaries of nature and crop cycles".

"That's just doubling down on bad policy". Two wrongs don't make a right.

Because the program was created during the Depression, it does not rely on new congressional approval.

The announcement came hours after Trump tweeted that tariffs "are the greatest!".

"It is clear to everyone that President Trump has gotten China's attention like never before", Perdue said.

Perdue noted that the move is a signal to China that the United States will not cave to retaliatory tariffs.

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