President Donald Trump pledges another $ 140 billion in support for US farmers, who are severely affected by the move to China’s trade war.
According to US Agriculture Minister Sonny Perdue, the aid will be paid in three installments, the first in July or August. This suggests that the Trump administration does not believe that a trade agreement with China will come first.
“The package we announce today means that farmers do not have to take the noise of the unfair customs China and other trading partners have introduced,” says Perdue.
Last year, Trump promised US farmers 96 billion in support. The help package that is now announced comes on top of this.
“We want to make sure the farmers get the help they need and that they get it very, very quickly,” says Trump.
In an effort to reduce US giant trade deficits with China and accelerate US industry, Trump has introduced high tariffs on steel, aluminum, solar panels, washing machines, and thousands of other Chinese products.
The other US trading partners are also affected by this, and several countries, like China, have responded to the introduction of similarly high tariffs on US goods, primarily agricultural products.
American farmers, not least in the Midwest where Trump has many voters, have exported large quantities of soybeans to China and are therefore hit extra hard.
Trade analyst William Reinsch, who is affiliated with the Center for Strategic and International Studies, calls Trump’s aid package to farmers voting.
– This has nothing to do with finances. Trump wants to win the agricultural states in the elections in 2020, and representatives in Congress are pushing him hard to get a solution to the trade conflict, he says.