The Trump administration on Thursday announced a new $16 billion aid package for farmers hurt by the trade war between the U.S. and China.
The assistance will provide direct payments to help farmers make up for losses resulting from retaliatory tariffs Beijing imposed on major U.S. crops. Limited access to China’s market has helped drive down the price of agricultural commodities since the collapse of trade talks earlier this month.
Beijing increased tariffs on $60 billion in U.S. goods in response to Trump’s decision to raise tariffs on $250 billion in Chinese imports to 25 percent.
“President TrumpDonald TrumpOvernight Defense & National Security — Presented by Boeing — Milley warns of 'Sputnik moment' for China WSJ publishes letter from Trump continuing to allege voter fraud in PA Oath Keeper who was at Capitol on Jan. 6 runs for New Jersey State Assembly MORE has great affection for America’s farmers and ranchers, and he knows they are bearing the brunt of these trade disputes,” Agriculture Secretary Sonny PerdueSonny PerdueOVERNIGHT ENERGY: Supreme Court rules that pipeline can seize land from New Jersey | Study: EPA underestimated methane emissions from oil and gas development | Kevin McCarthy sets up task forces on climate, other issues The Hill's Morning Report - Presented by Facebook - Georgia election day is finally here; Trump hopes Pence 'comes through for us' to overturn results Civil war between MAGA, GOP establishment could hand Dems total control MORE said in a statement. “In fact, I’ve never known of a president that has been more concerned or interested in farmer wellbeing and long-term profitability than President Trump.”
Trump is scheduled to meet with farmers and ranchers in the Roosevelt Room of the White House on Thursday afternoon and roll out the new aid program.
The program is similar to a $12 billion aid package Trump approved last year amid heightened trade tensions with China.
It is expected to last through the rest of the year, with the first batch of payments sent out in late July or early August. The president had previously said tariff revenue would help fund the aid package but the program as described by the Agriculture Department is not expected to directly use money collected from tariffs.
Our great Patriot Farmers will be one of the biggest beneficiaries of what is happening now. Hopefully China will do us the honor of continuing to buy our great farm product, the best, but if not your Country will be making up the difference based on a very high China buy......— Donald J. Trump (@realDonaldTrump) May 14, 2019
....This money will come from the massive Tariffs being paid to the United States for allowing China, and others, to do business with us. The Farmers have been “forgotten” for many years. Their time is now!— Donald J. Trump (@realDonaldTrump) May 14, 2019
The aid payments will be decided based on a county-by-county rate and how much of each crop a farmer has planted. Farmers of soybeans, the U.S. largest crop export to China, are eligible for relief, as are growers of corn, wheat, cotton, rice and sorghum as well as livestock producers.
White House officials have accused China of seeking to inflict damage on the president by targeting products from heartland states that are key to his reelection campaign.