Trump Gives Farmers $16 Billion in Aid Amid Prolonged China Trade War

Trump Gives Farmers $16 Billion in Aid Amid Prolonged China Trade War

On Monday, Canada and Mexico officially lifted the tariffs they had imposed on American pork, milk, cheese, wine and other products, a major relief to American farmers who count the countries as two of their top three export markets, in addition to China.

The collateral damage to farmers from the trade clash with China now looms as a potential obstacle to the president’s re-election. China’s tariffs against products like soybeans and beef and a recent move to cancel a major pork order have hit swing states, including Iowa, Ohio and Wisconsin, especially hard.

A survey of 400 American farmers by Purdue University and the CME Group, a global markets company, showed that sentiment plunged in April, stemming from concerns about worsening tensions with China. Only 28 percent of farmers surveyed said that they believed a soybean dispute with China would be resolved by July 1, down from 45 percent in March, while 74 percent of those surveyed said now was a “bad time” to make big farm investments.

“Farmers are becoming increasingly anxious over their future financial performance,” said James Mintert, the survey’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.

The president is increasingly focused on rural communities as he looks ahead to a fight with the Democratic nominee for the 2020 election.

Mr. Trump’s political advisers have pointed to the rapid rise of Joseph R. Biden Jr. to the top of Democrats’ 2020 field, powered, in part, by the former vice president’s popularity with blue-collar voters in Pennsylvania, Michigan and Wisconsin, as a reason to mitigate the pain on farms and factories of tariffs in the Midwest, current and former administration officials said.

Tom Vilsack, a former agriculture secretary who now represents the dairy industry, said on Friday that the removal of the tariffs was an important step but that passage of the revised North American trade agreement and new trade deals with China and Japan remain most crucial to reviving the dairy sector.

“With the difficulties experienced with the China talks, it was fair to assume that the administration needed to have some positive news coming out of the trade side of the shop,” Mr. Vilsack said.

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