Trump to give farmers more tariff-relief cash

The US (L) and Chinese flags are displayed outside a hotel in Beijing on May 14, 2019. - Beijing's latest retaliation against US tariff hikes -- an increase on $60 billion of US imports from June 1 -- could leave China running low on ammunition in the trade war. (Photo by Greg Baker / AFP)GREG BAKER/AFP/Getty Images

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There is significant damage from the prolonged trade war

United States President Donald Trump said proceeds from the new 25 per cent tariffs on $350 billion worth of Chinese goods will be used to buy products from U.S. farmers and ship them to needy countries over the next 18 months.

Agriculture Secretary Sonny Perdue is working on a plan to put into action, saying in a tweet that the president “loves his farmers and will not let them down!”

Last August, the U.S. Department of Agriculture set aside $12 billion for farmers and ranchers impacted by retaliation to the Trump administration’s tariffs on Chinese, Mexican and Canadian steel and aluminum. By March, nearly $8 billion of that was paid out.

Pork is one of the hardest hit sectors with Mexico’s 20 per cent tariff alone costing $12 per pig.

China’s retaliatory 62 per cent duty has taken a toll, too. Pork exports to China/Hong Kong in 2018 fell 29 per cent in volume to 351,774 metric tons and 21 per cent in value to $851.7 million.

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