US and European Union agree to work on trade barriers

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To help reduce some of the pain inflicted by a burgeoning trade war between the USA and its traditional economic allies, the Trump administration on Tuesday announced an aid package worth $12 billion for farmers who've been hurt by the tariffs.

The aid program will go into effect on September 4, right after Labor Day.

Gov. John Kasich (KAY'-sik) says Trump's imposition of tariffs on products from such allies as Canada under national security grounds was "completely absurd", and that now the president is resorting to "farm welfare" when USA farmers want trade. That American farmers have been hard hit is no accident.

"He is working with the Department of Agriculture to protect them and he'll keep doing that", White House Deputy Press Secretary Hogan Gidley told reporters during Air Force One Gaggle. And now they're being put on welfare.

At a speech Tuesday, he asked farmers to not believe reports that a trade war is a bad thing. China said it would retaliate, leaving even more US farm products at risk.

"We know that the impact has been substantial enough that it has made the difference between whether there is a profit margin in some cases", Rotz said.

The trips apparently failed to bring about a ceasefire with China over soaring trade frictions amid growing animosity, which have boiled into a trade war between the world's two largest economies.

"We hope that it doesn't come to that and that we can find a solution".

"We have to stick it out", Mr. Trump said. "At the end of the line, producers are going to be producing them at a loss".

"We are close partners, allies - not enemies". The Trump administration said Tuesday it would offer $12 billion in emergency funding for farmers hurt by the trade tiff - though even that plan drew scorn in local media.

"Overnight he also tweeted that "The European Union is coming to Washington tomorrow to negotiate a deal on Trade". "But right now, we're the ones that are taking the hit".

As part of the initiative to be announced on Tuesday, the USDA is expected to draw on the financial resources of a program known as the Commodity Credit Corporation, which helps shore up US farmers by buying their crops. Officials said Congressional approval is not required - only Congressional notification. The program can use up to $30 billion in funding from the Treasury Department to "stabilize, support, and protect farm income and prices".

For example, Arkansas Governor Asa Hutchinson, a member of Trump's Republican Party, plans to dispatch his economic development director, Mike Preston, to China before the end of this year. The Senate has several key races in agriculture-dependent states like Missouri, North Dakota, and in this November.

The commission, which manages trade relations on behalf of all 28 nations in the European Union, is preparing a list of retaliatory measures on American goods worth $20 billion should the US impose auto tariffs, Malmstrom said.

Without mentioning Ryan and other critics, Trump said "people snipping at your heels" during trade talks prevents the consummation of a trade agreement that will "never be as good as it could have been with unity".

Ebert is waiting to see the details of the aid package.

Tariffs are the greatest! Trump wrote. "That would finally be called Free Market and Fair Trade!" It's as simple as that - and every body's talking!

The GOP lawmakers say farmers want markets for their crops, not payoffs for lost sales and lower prices. Rand Paul added on Twitter.

Other Republicans backed the president. Bob Corker (R-TN) said, according to the Post. And foreign auto companies that make vehicles in the US, including Mercedes, BMW, and Volkswagen, would likely hemorrhage jobs if Trump's tariffs became a reality.

Others criticized the $12 billion relief package, saying the money is essentially a taxpayer-funded bailout for farmers.

"This is a awful idea", Holtz-Eakin told The Washington Post. "It's a misuse of the programs".

"The $12 billion in farm aid announced today will provide a short-term fix, but it's not a long-term solution".