Published: Wed, August 01, 2018
Money | By Wilma Wheeler

Iowa Republican: $12B bailout is proof that Trump's tariffs hurt farmers

Iowa Republican: $12B bailout is proof that Trump's tariffs hurt farmers

But Trump could trumpet that he had eliminated the bilateral trade deficit.

If farmers hurt by President Trump's trade war deserve government assistance, as the president has proposed, than so do ME lobstermen, who are watching the lucrative Chinese market dry up, and the price of the steel in the traps they need rise.

The EU trades $3.7 trillion worth of goods and services with the rest of the world, four times more than South Korea and more than the United States' $3.5 billion. The two leaders agreed to work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods.

Trump has announced a series of punitive tariffs on Chinese imports in a bid to halt a Chinese surge in high-technology industries that threatens to displace US dominance.

The U.S. president reverses himself with such bewildering frequency that one can take nothing for granted.

In setting out to dismantle the liberal trading order that the USA designed and built after 1945, Trump faced astonishingly little opposition from Congress-even though the Constitution gives that branch responsibility for trade policy.

"The 4 percent, 4.1, was a terrific order, but we are very focused on the long-term sustained economic growth, which our plans have had", he said.

The EU may be feeling pressure to emphasize that there was no farming concession made to Trump because of opposition in Europe to more genetically modified imports from America. He may also believe that his threat of steep tariffs on cars will compel Germany to force the European Union to capitulate because Chancellor Angela Merkel won't want to hurt her export-oriented auto industry.

Last week, President Trump announced a $12 billion program of farm subsidies to assist farmers hurt by his escalating trade war with China, Canada, and other countries. What if the Chinese trade negotiations turn around and end up being a huge windfall for USA soybean producers? In Europe, alarm bells have been sounded over China's growing economic influence there. This very demographic is the most impacted by current tariff escalations with US trading partners, as China, Canada, Mexico, and others have taken a nuanced approach in enacting retaliatory tariffs by targeting states and products that impact Trumps own voter base.

"We're starting immediately. I'll be involved, Bob Lighthizer is the key guy absolutely". The long-term impacts of an extended trade dispute with China are hard to predict.

Since taking office a year ago, Trump has implemented policies to restrict what he sees as unfair competition from other countries. Many countries have consequently targeted American agricultural products with tariffs in retaliation for Trump's tariffs on steel, solar panels, washing machines, and other foreign-made goods.

In an effort to rein in China's high technology industries that he charges have stolen intellectual property from American companies, Trump has ramped up threats of tariffs on $50 billion worth of imports from China to $450 billion after China retaliated with its own duties on imports from the United States.

Chinese-owned Volvo Cars IPO-VOLVO.ST said it was shifting production of its top-selling SUV production for the US market to Europe from China to avoid Washington's new duties on Chinese imports.

The administration also announced $12 billion in emergency aid for farmers this week.

What do Americans really think about tariffs and trade issues?

For China, Moody's said the trade restrictions will lead to a slowdown, cutting real GDP growth by around 0.3 to 0.5 percentage points in 2019. Ron Johnson said. The general consensus across the aisle remains that by far the current best course of action would be to reverse the USA -imposed tariffs and end the self-inflicted trade war.

Kudlow also praised Friday's news that the United States' economy grew by an impressive 4.1 percent during the second quarter of this year as the highest rate in almost four years, according to the Bureau of Economic Analysis (BEA).

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