GOP senators say Trump's farm relief package is a dud

Trump plans $121 billion emergency aid to farmers hit by retaliatory tariffs

Trump plans $121 billion emergency aid to farmers hit by retaliatory tariffs

White House officials hope it will quiet some of the unease from farm groups, but the new plan could revive debates about taxpayer-funded bailouts and the degree to which Trump's trade strategy is leading to unforeseen costs.

The same day that President Donald Trump gushed on Twitter that "tariffs are great", his administration disclosed plans to pay billions in aid to USA farmers getting slammed by tariffs on their goods, a new report said Tuesday.

The program is expected to start taking effect around Labor Day.

"We're making tremendous progress". China has fought back with tariffs of its own, sparking a global trade war that some fear would plunge financial markets into chaos. "This announcement is substantial but we can not overstate the dire consequences that farmers and ranchers are facing in relation to lost export markets". You watch what's going to happen. "Just be a little patient". Because it's an existing program, congressional approval isn't necessary.

"These programs recognize the market challenges our farmers are facing today, and will provide some temporary assistance".

But officials said soybeans were likely to be the largest sector affected by the programs. Soybean prices have plunged 18 percent in the past two months.

In a follow up tweet he reaffirmed the administration's tough stance on trade, explaining "either a country negotiates a fair deal - or gets hit with tariffs".

Later Tuesday, he tweeted: "I have an idea for them".

US companies and industry groups are finding it increasingly hard to escape the impact of Trump's tariffs.

U.S. Secretary of Agriculture Sonny Perdue has officially announced the US$12 billion support measures, saying they are in line with the estimated US$11 billion impact of the unjustified retaliatory tariffs on U.S. agricultural goods.

He added that, "Tariffs are taxes". They are meant to protect domestic businesses and put foreign competitors at a disadvantage.

Some of the money will also go to boosting export efforts.

After Trump announced plans to impose $50 billion in tariffs on Chinese imports, Beijing retaliated with plans to impose tariffs on a range of agricultural products from the USA including soybeans, grains, meats and dairy products.

Lawmakers from several States have been writing to Trump administration not to enter into a trade war with countries like China because of this. "If tariffs punish farmers, the answer is not welfare for farmers - the answer is remove the tariffs".

But this is undoubtedly not what the White House is hearing from Republicans in the places-especially though not exclusively agricultural states-where Trump's "easy" and "simple" trade polices are wrecking havoc and breeding political panic. "But Wisconsin is our home base, and we want to expand and grow here", Clark said. Though the Republican said they would happily welcome the political benefits that will come from the farm aid plan, they anxious the damage may already be done with growers whose farm prices and commodity prices have shrunk in recent months. He called the European Union "terrible" and said the USA was losing billions of dollars in a trade deficit.

In response to Perdue's announcement, the U.S. Wheat Associates and the National Association of Wheat Growers issued a joint statement thanking the administration for acknowledging that farmers need help. "Long term, we would much rather derive our income from the marketplace. The underlying problem is still there". The plan aims to provide temporary relief to farmers who have faced retaliation from USA trade partners during Trump's escalating trade dispute with China.

Canada, Mexico and the European Union also struck back at Trump's leveling of USA steel and aluminum tariffs by hitting United States exports of agriculture products and other heavily exported U.S. goods. He has also threatened to slap tariffs on imported cars, trucks and auto parts, potentially targeting imports that previous year totaled $335 billion.

The Trump administration has revealed a twelve billion dollar plan to help American farmers, . who have been hit by the U.S. President's intensifying trade war with other countries.

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