Trump compensates farmers who are victims of its trade war

Washington – The Trump administration on Tuesday announced $ 12 billion in emergency aid to US farmers affected by US tariff retaliation, recognizing the first collateral damage caused by the president's trade dispute.
  

The US Secretary of Agriculture, Sonny Perdue, said that this sum would be granted to farmers put in trouble by " illegal tariff retaliation " like the producers of soy, pork , fruits, rice and milk.

The latter were particularly targeted in recent months by the customs taxes imposed by the United States trading partners, who decided to retort to US tariffs on steel, aluminum or taxes on tens billions of Chinese imports.

These subsidies are a solution " in the short term " until the negotiations lead to a long-term trade agreement, said Sonny Perdue.

With this financial badistance, the Trump administration seems to concede for the first time that its escalation strategy in tariffs, not only with China but also with the European Union, Canada and Mexico, has a negative effect on some US sectors.

This announcement contrasts with the statements of the US President on Tuesday. In a tweet, he badured that " everything would go well " in international trade.

" Customs tariffs are the best, either a country that has treated the United States unfairly on trade negotiates a fair agreement, or is subject to tariffs ," tweeted billionaire republican. " It's as simple as that – and everyone is arguing! Remember, we're the + piggy bank + that's being robbed. All will be fine! ", he continued.

For several months, President Trump has been engaged in a commercial tussle on several fronts.

Retaliation was quick, affecting US agricultural exports to China, Mexico, Canada, as well as a range of typical products destined for Europe ranging from bourbon to jeans.

– Income Decrease –

For the American farmers, the loss of revenue that these taxes have incurred since the beginning of the trade conflict amounted to 11 billion dollars, said the Minister of Agriculture, and $ 13 billion, according to the agricultural profession that has been concerned for months about the impact of retaliation.

The $ 12 billion support plan includes direct badistance to farmers as well as a program to purchase production and help promote its distribution.

This initiative " shows that other nations can not maltreat our agricultural producers and force the United States to submit ," said Donald Trump's agriculture minister.

" Other nations should stop their misbehavior and not apply illegal tariff retaliation ," said Perdue.

Robert Lighthizer, the Trade Representative, also praised " President Trump's strong initiative which, as promised, ensures that US farmers and ranchers do not suffer the cost of illegal retaliatory measures. China and other partners ".

Farmers on their side did not seem completely rebadured.

While acknowledging this 12 billion dollars in aid, the National Farmers Union, a leading farmers' organization, called on the government to " do more to provide a lasting solution to the long-term damage that of the commercial war ".

" It is the livelihoods (farmers) that are at stake with every tweet, every threat or customs tariff declaration coming from the White House ," responded the farm organization.

For the American Farm Bureau Federation, Federal Aid " is a positive news that saves us time ". " But we can not emphasize enough the terrible consequences faced by farmers in view of the loss of export markets ".

Since the conflict, the price of soybeans has dropped 25% to its lowest level since 2008-2009.

Among the elected officials, the reactions were mixed. For John Thune, Republican Senator of South Dakota, grants are " recognition that there are many unexpected consequences " to trade policy that causes " many collateral damage ".

The Whirlpool appliance manufacturer was another example, against his will.

The group that hailed the imposition of taxes on South Korean washing machines at the beginning of the year, supposed to protect the market shares of the devices " made in America ", began to disillusioned.

Whirlpool is now forecasting lower sales and profits this year because of tariffs on steel, a material that accounts for half of the cost of manufacturing its washing machines.