WASHINGTON:The US government has announced $12 billion in aid to farmers hit by trade war between America and the world’s leading economies that President Trump began by imposing tariffs on imports from countries like China, the EU, Canada and Mexico.
These countries have retaliated by imposing tariffs on American goods including US grains, produce and meat that have hit hard the American farmers. But, President Trump appears adamant to go ahead with the measures he introduced in spite of warnings by world leaders and economists about the consequences to the global economy.
“Not any longer, folks. We’re making tremendous progress,” President Trump said while speaking at the Veterans of Foreign Wars National Convention in the city of Kansas, adding that farmers would be the biggest beneficiary from the steps he has taken.
“And the farmers will be the biggest beneficiary. Watch. We’re opening up markets. You watch what’s going to happen. Just be a little patient.” President Trump recently levied steel and aluminum tariffs on Canada, Mexico and the European Union, who responded with retaliatory tariffs on U.S. goods. The U.S. and China have hit each other with billions in tariffs, as well. China has also imposed tariffs on US good in response to duties imposed by the US on Chinese imports.
Agriculture groups have been calling on the Trump administration not to impose tariffs for fear of retaliation that has eventually happened.
Some groups have said they would lose tens of millions of dollars due to new tariffs imposed on American exports.
On Tuesday, the Department of Agriculture (USDA) announced it would offer $12 billion in aid to farmers hindered by retaliatory tariffs. The aid will be used to buy crops from farmers suffered by these tariffs.
According to a report by the online The Hill news portal, Americans crops and means worth billions of pounds were sitting idle in storage facilities and producers were losing money because of canceled sales.
The USDA will provide direct payments to producers of soybeans, sorghum, corn, wheat, cotton, dairy and hogs to help them cover their losses and find new markets for their goods.
The department will also purchase surpluses of fruits, nuts, rice, legumes, beef, milk “for distribution to food banks and other nutrition programs,” the USDA announced.
In a sign of protracted trade war with China, and as the President appears firm on his stance, the Trump administration is seeking to impose more tariffs on Chinese imports and have also mulled taxes on foreign automobiles.
Senator Jerry Moran from the ruling Republican Party said the money the Trump administration offered in direct aid was not sustainable and would only help portion of the farmers.
