Trump, EU's Juncker Set to Meet Amid Tariff Dispute
- Author: Anthony Vega Jul 26, 2018,
Jul 26, 2018, 2:21
The package of programs is authorized under the Depression-era Commodity Credit Corporation Charter Act, according to Agriculture Secretary Sonny Perdue, and thus does not require approval from Congress. It has authority to borrow up to $30 billion from the Treasury at any one time to "stabilize, support, and protect farm income and prices". "Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs", Mr. Trump wrote.
The administration on Tuesday unveiled the largest emergency farm aid package since 1998, dipping into a Great Depression-era program that will pay up to $12 billion starting in September to help USA farmers weather losses.
The United States exported $138 billion in agriculture products in 2017, including $21.5 billion of soybeans, the most valuable U.S. export, China alone imported $12.3 billion in soybeans past year, according to the U.S. Department of Agriculture. Every third row of soybeans in Iowa is exported.
It would also affect business confidence in open markets for years to come, the British bank chief, Mark Carney, said.
"He (Trump) understands the farmers in this country feed us, they fuel us, they clothe us and he'll do everything he can to protect them".
"It's a Band-Aid on a broken leg", said Michael Petefish, a 33-year-old Trump supporter and fifth generation soybean farmer in southern Minnesota.
USDA officials told reporters they were still working to set up the programs, which they expect to be ready by early September. "Both the USA and the European Union drop all Tariffs, Barriers and Subsidies!" Many lawmakers expressed skepticism that the plan would yield long-term prosperity for American farmers.
"This is an election ploy. We have a number of areas on which to work together", he said.
USDA announces 3-prong approach to aid farmers
Meanwhile, the first diplomatic source said, US-China diplomacy is progressing only on the sub-national level, between US state governors and their Chinese counterparts and potential investors.
In a tweet late Tuesday, Trump said both the United States and the European Union should drop all tariffs, barriers and subsidies.
On Tuesday, Trump declared on Twitter that "tariffs are the greatest!"
'Negotiations are going really well, be cool. The end result will be worth it!'
This year's soybean crop could yield a record harvest for IL soybean farmer Dave Kestel.
Kestel said he still has faith in the president's strategy, but admits he's facing the consequences of the trade war.
"To repeat, this damage is self-inflicted, so the Administration is right to take steps to address it, but the next step should be ending the trade war", the statement read.
Rules for the programs have not been fully developed, and an exact date for rollout has not been determined, though Ibach said officials are targeting Labor Day. "I don't want to lose these markets that we've built". I don't want bailouts. These new export markets will remain when the current disputes over trade are settled on terms more favorable to American producers. "This is a temporary measure, hopefully to show China and other countries they can not bully the U.S.to caving in on unfair trade practices". "I think it will only put out the fire a little bit".
Chinese diplomats in the U.S., though, were caught off guard by Trump's latest remarks.