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Trump's Bailout For Farmers Caught In The Trade War: What You Need To Know

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Trump's Bailout For Farmers Caught In The Trade War: What You Need To Know
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The Trump administration announced a planned $12-billion emergency federal bailout Tuesday for U.S. farmers, who are suffering from the impact of retaliatory Chinese tariffs on exported U.S. goods. Critics of the president are questioning government bailouts related to Trump’s self-inflicted trade war, but supporters argue that increased revenue from U.S. tariffs on Chinese goods more than pays for the bailout.

'Tariffs Are The Greatest!'

Secretary of Agriculture Sonny Perdue told reporters Tuesday that the temporary bailouts will ease the trade war burden on U.S. farmers while the administration works on longer-term trade deals with international partners. Perdue made the announcement the same day Trump tweeted that “Tariffs are the greatest!”

Trump recently threatened to impose tariffs on all $500 billion-plus of annual Chinese imports, and China has retaliated with its own tariffs on soybeans and other U.S. exports, which has been extremely costly to U.S. farmers. Many of the impacted farms are located in key 2018 election swing states such as Wisconsin, North Carolina, Ohio and Iowa.

Bailout Critics

Crain's Detroit Business reporter Dustin Walsh tweeted that, even if the bailout is temporary, U.S. soybean farmers could permanently lose their Chinese customers to Brazil and other international producers.

While investors wait for details about the new bailout, the announcement is already impacting the market. Shares of Deere & Company (NYSE: DE) were up by 3.18 percent at the close Tuesday.

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Posted-In: Donald Trump tariffs trade warPolitics General Best of Benzinga

 

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