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Trump plans $121 billion emergency aid to farmers hit by retaliatory tariffs

25 July 2018

"This is only a short-term solution", said Agriculture Secretary Sonny Perdue, and is meant to give Trump time to rebalance trade rules worldwide.

Juncker won't have a "great deal" or offer in hand when he arrives at the White House but will instead be trying to sound out Trump on approaches to resolving the dispute, Bloomberg reported, citing a European official who asked for anonymity to preview the meeting.

'What farmers in Iowa and throughout rural America need in the long term are markets and opportunity, not government handouts, ' Grassley said.

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. "So the way we keep America great is to make at least reasonable, I'm not saying at least reasonable, at least fair trade deals not stupid trade deals like we've put up with for 25 years, so we're changing it and we're changing rapidly".

"Tariffs are not great", Toomey told CNBC, echoing Ryan. Currently, the European Union places a 10 percent tariff on USA auto imports, while the United States has a 2.5 percent tariff on European cars. You choose a war of choice, which is what this trade war is, and then you say afterward, let's just solve it by buying people gold plated crutches? "Just be a little patient".

The officials said payments couldn't be calculated until after harvests come in.

Trump declared earlier Tuesday that "Tariffs are the greatest!" and threatened to impose additional penalties on USA trading partners as he prepared for negotiations with European officials at the White House. Farmer signups will begin later this year after the fall harvest, according to the U.S. Department of Agriculture, with more details on administration due by the Labor Day holiday in September.

Trump plans $121 billion emergency aid to farmers hit by retaliatory tariffs
Trump plans $121 billion emergency aid to farmers hit by retaliatory tariffs

The tariffs came in response to $34 billion worth of duties the Trump administration placed on Chinese products.

The Market Facilitation program will distribute the bulk of the money to farmers and ranchers producing commodities directly impacted by the tariffs, including soybeans, sorghum, corn, wheat, cotton, and pork.

Lawmakers from several States have been writing to Trump administration not to enter into a trade war with countries like China because of this. The president has said trade will be central to that discussion.

Axios notes the bailout is being advertised as "temporary", but that, too, was the original idea with the tariffs that produced the retaliatory actions by China that have created the most heartburn in the heartland.

Its announcement would also serve as an indication that Trump has no plans to lift his tariffs any time soon, as senators from across the Farm Belt have pleaded with him to do. However, that would be politically tricky, for both sides - America now has a 25% levy on European trucks coming into the country, to protect jobs in its rust belt. European Trade Commissioner Cecilia Malmstrom, who will accompany Juncker, said last week that the EU was preparing a list of US products to hit if the United States imposed the tariffs. "It's as simple as that".

Some of fruits to be hardest hit by the trade policies are cherries - which are now facing a 50% tariff going into China - and apples, which have been hit by higher tariffs in China and Mexico, with India set to also implement additional duties next month in response to US duties on steel and aluminium imports.

Trump has placed tariffs on imported steel and aluminum, saying they pose a threat to US national security, an argument that allies such as the European Union and Canada reject.

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Trump plans $121 billion emergency aid to farmers hit by retaliatory tariffs