Trump Announces $12B Bailout For Farmers

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China purchased $100 million of Washington cherries previous year, Sandison said.

China, the European Union, Canada and Mexico have all been hit by US levies on some of their imports, including steel and aluminum, and have retaliated by placing their own tariffs on USA agricultural exports, targeting farm states that are politically important to the president.

Republican Senator Ben Sasse, a frequent Trump critic, said the president's trade policies recalled a past of perilous economic instability.

The aid is meant to shield the industry as countries raise taxes on USA products such as soybeans in response to new Trump administration tariffs. John Kennedy, R-La. "You've got to treat everybody the same". Sign up for payments probably will begin around Labor Day.

In a speech to in Kansas City, Missouri on Tuesday, the president aggressively defended his trade policies.

"We'll make it up to them".

The aggressive crackdown on free trade has prompted frustration among American farmers, some of the most loyal supporters of Trump who could decide if his party will keep majorities in Congress come November. "We're opening up markets". "It's all working out, and just remember what you're seeing and what you are reading is not what's happening".

"Just be a little patient", Trump said.

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The Agriculture Department said the proposal would include direct assistance for farmers, purchases of excess crops and trade promotion activities aimed at building new export markets. Fruit, nuts, rice, beef, pork and dairy products bought from farmers will be redistributed to federal nutrition assistance programs, according to Politico.

But officials said soybeans were likely to be the largest sector affected by the programs. Soybean prices have plunged 18 percent in the past two months.

Later Tuesday, he tweeted: "I have an idea for them".

The stakes are high, as the vehicle industry carries huge heft in terms of trade and jobs in both the European Union and U.S.

USDA plans to spend up to $12 billion to help ag producers facing market disruptions due to what it calls "illegal retaliatory tariffs". The tariffs were lifted in December 2003 after the World Trade Organization ruled them invalid.

Some of the money will also go to boosting export efforts.

Trump has threatened to place penalty taxes on up to $500 billion in products imported from China, a move that would dramatically ratchet up the stakes in the trade dispute involving the globe's biggest economies. China said it would retaliate, leaving even more US farm products at risk.

American Farm Bureau Federation President Zippy Duvall welcomed the aid, saying it "should help many of our farmers and ranchers weather the rough road ahead and assist in their dealings with their financial institutions".

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"These countries have been ripping us off for decades", he said.

Sen. Bob Corker of Tennessee says, "Instead of offering welfare to farmers" to solve a problem the administration created, it "should reverse course and end this incoherent policy".

"Countries that have treated us unfairly on trade for years are all coming to Washington to negotiate", Trump tweeted.

The administration has so far downplayed the impact of Trump's ratcheting up of trade tensions on U.S. producers by emphasizing the long-term benefits of his efforts to even out USA trade relationships.

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

"This is becoming more and more like a Soviet-type of economy here: Commissars deciding who's going to be granted waivers, commissars in the administration figuring out how they're going to sprinkle around benefits", said Sen. "The underlying problem is still there". Canada and Mexico, the nation's major NAFTA partners, have retaliated with tariffs on agricultural exports.

Canada, Mexico and the European Union also struck back at Trump's leveling of USA steel and aluminum tariffs by hitting U.S. exports of agriculture products and other heavily exported United States goods.

The US slapped tariffs on $34 billion of Chinese imports.

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