The Trump administration has discussed providing financial assistance to farmers who may face retaliation from America's trading partners.
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President Trump is weighing another round of farm aid similar to what he proposed during the 2018 trade war with China. But that aid package was expensive, and it could be even more so this time.
Ahead of President Trump's plan to impose sweeping tariffs across the globe this week, his administration is weighing a new round of emergency aid for farmers who will likely be caught in the crosshairs if America's trading partners retaliate.
The early discussions are a tacit admission that Mr. Trump’s high tariffs could cause financial ruin for the entire U.S. farm industry, a key voting base that the president also tried to protect during his trade war with China in 2018.
While the president has not announced any details of the aid package, his advisers have hinted in recent days that he may follow the example he used in his first term, when he sent billions of dollars in payments to farmers whose exports to China have plummeted due to the trade war with Beijing.
That rescue package ultimately proved costly: The government shelled out about $23 billion after China imposed steep retaliatory tariffs on soybeans, corn, wheat and other U.S. imports beginning in 2018. That money came from a U.S. Department of Agriculture fund, some of which can be used to respond to emergencies, including trade disputes.
Agriculture Secretary Brooke Rollins said last week that the administration might consider providing emergency aid to farmers, telling reporters that Mr. Trump had asked her to “develop some programs that would potentially mitigate any economic disasters that might occur” amid the global trade standoff.
But the price could be even higher this time, as Mr Trump has threatened to target many countries, including American allies such as Europe, Canada, Mexico and Japan. The potential scale of their collective retaliation could cause deeper and more lasting damage to American businesses.
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