Trump announces $16B bailout for US farmers hit by trade war with China

Global Business

Trump announces $16B bailout for US farmers hit by trade war with ChinaPresident Donald Trump, accompanied by Agriculture Secretary Sonny Perdue, center left, speaks during a meeting to support America’s farmers and ranchers in the Roosevelt Room of the White House, Thursday, May 23, 2019, in Washington. (AP Photo/Andrew Harnik)

U.S. farmers hoped there would be a trade deal by now—not another bailout.

But for the second time in a year, the U.S. government is.

CGTN’s Nathan King reports.

U.S. President Donald Trump announced $16 billion, following the $12 billion Washington handed out last year.

The money is to help the rural U.S. cope with the U.S.-China trade war- and will cover the rest of 2019.

“This support for farmers will be paid for by the billions of dollars, our treasury takes in, we will be taking in depending on what period of time we’re taking many billions of dollars, far more than the $16 billion that we’re taking about, ”Trump said flanked by farmers. Once again Trump insisted that China is paying the tariffs even though it’s U.S. companies who largely foot the bill.

So far despite the pain, rural America has stuck with Trump. Some farming counties voted over 90 percent for Trump in 2016.

But farm bankruptcies are on the rise. Severe floods have wiped out crops and the soybean market says it all. Prices have sunk to lows not seen in decades.

Patience lasts only so long farmers will take the bailout money, but really want their markets back

Fears are after a trade deal is done, Brazil, Argentina, Russia and others will have taken some of their market share—perhaps, forever.