President Donald Trump is trying to offset the damage from his tariffs by offering farmers some free money.
Because his trade war is backfiring – nations are retaliating by targeting U.S. agriculture, particularly soybeans and oranges – the administration is thinking about establishing a multi-billion-dollar stimulus package to farmers across the country. In an election year, the White House had no other choice: Trump’s base is Middle America, and if they see the trade war impacting their farms, they’ll vote in Democrats.
Right now, the White House is reportedly placing the number at $12 billion.
This was expected as President Trump hinted that help was on the way in recent months.
From Politico:
The administration’s plan will use two commodity support programs in the farm bill, as well as the Agriculture Department’s broad authority to stabilize the agricultural economy during times of turmoil.
The plan has been in the works for months. It seeks to ensure U.S. farmers and ranchers — a key constituency for President Donald Trump and Republicans — don’t bear the brunt of an escalating trade fight with China, the European Union and other major economies as the administration pursues an aggressive course to rebalance America’s trade relationships.
Trump’s moves to slap tariffs on imports from some of America‘s largest trading partners have prompted retaliation against U.S. farm goods like pork, beef, soybeans, sorghum and a range of fruits.
Trump, back in April, directed Agriculture Secretary Sonny Perdue to devise a plan to mitigate any financial damage to U.S. agricultural producers’ bottom lines that could result from the ongoing trade battles. But the administration has so far offered few details on the amount of aid that would be provided and how it would be distributed.
So, Americans are being taxed twice: one for tariffs and the other to cover the cost of subsidies.
What the heck is going on in the Trump White House?
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