United States and European Union should ‘drop all Tariffs, Barriers and Subsidies’, Trump says

Larry Hoffman
July 25, 2018

"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.

Senator Ben Sasse, a Nebraska Republican, said in a statement: "This trade war is cutting the legs out from under farmers and White House's "plan" is to spend $12 billion on gold crutches".

"Our farmers have been in nonstop, saying they want trade, not aid, and now they're being put on welfare", Sen.

Trump declared earlier Tuesday that 'Tariffs are the greatest!' and threatened to impose additional penalties on USA trading partners as he prepared for Wednesday's negotiations with European officials at the White House. They want trade, not aid. "There's no ambiguity about this from the producers in my state".

Trump said in a speech to the VFW that farmers will be "the biggest beneficiary" in the long run. "The president's tone regularly suggests somehow that the government has created this bounty. We need access to the export market".

The government announced a $12 billion plan Tuesday to assist farmers who have been hurt by President Donald Trump's trade disputes with China and other trading partners.

Sen. Charles Grassley, R-Iowa, said the administration's move was "encouraging for the short term". Furthermore, we are more than 18 months removed from USA withdraw from the Trans Pacific Partnership (TPP). The Trade Promotion Program will help farmers seek out new export markets.

The Commodity Credit Corporation has broad authority to make loans and direct payments to USA growers when prices for corn, soybeans, wheat and other agricultural goods are low.

The United States Department of Agriculture said it will authorize what it called a short-term relief strategy for farmers affected by retaliatory tariffs imposed by China and other countries.

Still, Blake Hurst, a corn and soybean farmer and president of the Missouri Farm Bureau, said that unless the White House's policies change, the USA agriculture industry will continue to suffer. The administration is keenly aware of the backlash in some Republican circles over the tariffs on steel, aluminum and $34 billion worth in Chinese imports.

The aid package is expected to target soybean farmers, dairy farmers, and pork producers, among others.

Former Congressional Budget Office Director Douglas Holtz-Eakin said the emergency aid for farmers would likely be considered Trump's first taxpayer funded bailout of private entities, an unusual occurrance during a strong economy. "I have an idea for them".

When Donald Trump announced his tariffs plan in April he promised that it would only work to benefit farmers.

But the plan magnified objections among many Republicans that the tariffs amount to taxes on American consumers. A senior European official said Juncker will meet with Trump on Wednesday equipped with offers to de-escalate the trade war, while convincing him to hold off on auto tariffs.

But that provided little solace to rank-and-file Republicans, who said the tariffs are simply taxes and warned the action would open a Pandora's box for other sectors of the economy.

In a separate tweet he said that tariffs his administration has imposed are working to bring other countries to the negotiating table.

The Agriculture Department predicted before the trade fights that USA farm income would drop this year to $60 billion, or half the $120 billion of five years ago.

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