Colorado Farmers React To Presidents Agriculture Aid Amid Tariffs

Robert Sakata

Robert Sakata

The Trump administration has imposed tariffs on $34 billion worth of goods from China.

Germany, home to big carmakers such as Volkswagen AG (VOWG_p.DE) and Daimler AG (DAIGn.DE), would be hard hit by auto tariffs, and the automotive industry has warned such measures could hike vehicle costs by $83 billion and result in the loss of hundreds of thousands of jobs.

A 20 percent drop in soybean prices since the tariff threats began last spring represents about an $8 billion dollar loss for US farmers, including some $700 million for Minnesota producers. Beijing retaliated with tariffs on soybeans and pork.

Milk and dairy prices have dropped 10 percent in the last month, Rotz said.

Longtime soybean farmer Jim Badger is trying to see the upside of the new subsidies to offset losses from tariffs taking effect July 5th.

About one out of every three rows of USA soybeans is shipped to China, according to estimates.

US plans to subsidise American farmers caught in the US-China trade war signal an escalation in the hostilities, Chinese analysts have warned.

In a speech on Tuesday, he said farmers would be the "biggest beneficiary" of the disputes after countries strike new trade deals.

American stock markets jumped in their last half-hour of trading in response to reports of a US-EU agreement.

Nebraska senators react to $12B plan to assist farmers affected by tariffs
Colorado Farmers React To Presidents Agriculture Aid Amid Tariffs

"This is a self-inflicted wound that borrowing $12 billion won't solve", she said. This aid package can be authorized without congressional approval because it uses the Department of Agriculture's Commodity Credit Corporation, a Depression-era program authorized to borrow up to $30 billion in order to "stabilize, support, and protect farm income and prices".

Trump's latest tweets came a day after his administration's first acknowledgement that the aggressive trade actions are causing domestic pain, with the announcement of $12 billion in aid for farmers who have been the primary targets of Chinese retaliation. "All will be Great!" he concluded.

The day was vintage Trump: He often criticizes other world leaders and lawmakers, only to be upbeat when appearing with them in public.

Sen. Lindsey Graham, R-S.C., tweeted that the agreement "not to impose additional tariffs during negotiations is very smart and the best way to achieve a win-win solution".

The equity gains pushed up government bond yields in the USA and Europe, with Germany's 10-year yield DE10YT=RR, the benchmark for the euro zone, coming close to a one-month high at 0.42 percent. "The fact that other countries are bad at economics-and harm their own people with tariffs and other protectionist schemes-does not justify our own economic incompetence".

Auto tariffs at the level Trump has threatened would add about 10,000 euros (US$11,700) to the sticker price of a European-built vehicle sold in the USA, according a European Commission assessment obtained by Bloomberg News last month. "If tariffs punish farmers, the answer is not welfare for farmers - the answer is remove the tariffs". Ben Sasse, R-Neb., said that the plan would spend billions on "gold crutches".

American farmers have finally found a government subsidy they don't like.

"They have a positive attitude going into this".

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