The Trump administration will provide financial assistance to farmers caught in a trade war initiated by the implementation of tariffs. "We need a longer-term strategy to ensure that farmers are able to sell their goods around the globe".
"And the farmers will be the biggest beneficiary", Trump added. "They are anxious about tariffs".
Trump has accused the European Union of unfair trade practices and has threatened to raise tariffs on cars imported from the bloc. John Thune, whose state produces significant pork, soybeans and grains, slammed the decision to offer farmers aid without fixing the root problem.
"Both the U.S. and the European Union drop all Tariffs, Barriers and Subsidies!"
Defiant, Trump told a Kansas crowd Tuesday, "Just be a little patient". Many farmers are accepting that message. "If tariffs punish farmers, the answer is not welfare for farmers - the answer is remove the tariffs".
"I know that Trump's tariffs targeting China will have some effect, but we're not anxious at all, since we're producing foreign flags every single day", she said.
The Commodity Credit Corporation has broad authority to make loans and direct payments to USA growers when prices for corn, soybeans, wheat and other agricultural goods are low.
He said "prices for farm products are plunging from already very low levels", and called for a support program to mitigate the damage "for years to come".
"I applaud the Administration for taking this needed action, and I am confident that President Trump, Secretary Perdue, and Ambassador Branstad are all working diligently to open China's markets to greater trade in Iowa's agricultural products". The assistance is "a firm statement that other nations can not bully our agriculture producers to force the United States to cave in".
Ryan said he understood Trump's goal - of trying to get a "better deal for Americans" - but he disagreed with the president's strategy.
The administration has also engaged in hardline trading negotiations with Canada and European nations, seeking to renegotiate agreements he says have undermined the nation's manufacturing base and led to a wave of job losses in recent decades. He emphasized the aid announced Tuesday is meant to be a temporary measure. Deere shares rose 4.6 percent, more than any full-day gain since May 18. He grows about 25,000 bushels of soybeans a year, so if the price goes down $2, that costs him around $50,000.
As just one example of how farmers are impacted, China used to import $1 billion worth of American-grown sorghum annually, which made up 77 percent of all USA sorghum exports.
Currently, the EU has a 10 percent tariff on USA auto imports, while the US has a 2.5 percent tariff on European cars.
Options activity has been known to spike before the public announcement of market-moving news and the U.S. Securities and Exchange Commission has pursued enforcement actions when the activity has been determined to be insider trading involving options.
Smartphones were not included in the July 6th tariffs on $34 billion of Chinese goods, or on the $16 billion round expected for August. "China made $517 Billion on us past year".
US farm profits were already projected to reach a 12-year low before any trade actions were announced. All of agriculture is being impacted. President Barack Obama allocated US$170 million to help farmers struck by drought in 2012.