Trump announced a major aid package for U.S farmers following U.S-China trade war

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The U.S President Donald Trump has announced another substantial aid package for farmers across the United States following his trade war with China. The White House administration’s tit-for-tat exchange in tariffs with Beijing has critically damaged business of farmers in the United States. Most U.S farmers rely on foreign buyers to purchase their soybeans, corn, pork, and other commodities. The package was presented during briefing of USDA (US Department of Agriculture). The bulk of which will be spent on direct payments, surprised growers, and traders who had expected to learn separate payment rates for soybeans, hogs, corn and other crops.

A number of farm groups welcomed the recent move, but called for a trade deal with China as soon as possible. Some Democrats have slammed the plan and called it a ‘band-aid’. They said the county-based payment system could leave some farmers with reduced aid. U.S farmers have been among the hardest hit from a trade dispute with China, once a destination for more than 60% of U.S soybean exports. Trump said in a press conference regarding the aid package, “The farmers have been attacked by China. But the $16 billion of funds will make clear that no country has veto on America’s economic and national security”.

It is noteworthy that the trade dispute escalated during current month after Washington and Beijing hiked tariffs on imports of each other’s goods. It left U.S farmers sitting on record volumes of soybeans with China halting purchases. On Thursday, the USDA officials said they will roll out $14.5 billion in direct payments in 3 separate tranches with the first one planned for late July. The secretary of Agriculture, Sonny Perdue said, “The package we are announcing today ensures that farmers will not bear the brunt of those trade practices by China or any other nations. While farmers would tell you they’d rather have trade not aid, without the trade, they’re going to need some support”.