Trump to provide aid to farmers amid risk of retaliatory measures over US tariffs

The administration of US President Donald Trump is considering the possibility of emergency financial support for American farmers who may suffer due to retaliatory measures by US trading partners in connection with the upcoming introduction of tariffs from April 2. This was reported by the New York Times, citing sources familiar with the discussions.

In February, Trump imposed customs duties of 25% on imports of steel and aluminum, including supplies from the European Union. In late March, he threatened even higher tariffs on European and Canadian goods if these countries joined forces to oppose the tariffs. According to media reports, the EU expects the introduction of uniform “double-digit” tariffs from April 2.

“On the eve of President Trump’s plans to impose large-scale tariffs around the world, his administration is considering a new package of emergency aid for farmers who are likely to be among the victims if US trading partners take retaliatory measures,” the newspaper writes.

According to the newspaper’s sources, the White House has already held preliminary consultations with industry lobbyists and representatives of the Republican Party, but the negotiations are still at an early stage, since final decisions on tariff policy have not yet been made.

One of the possible support options is the provision of compensation through the Department of Agriculture, similar to the measures taken during the trade war with China in 2018, when about $23 billion was allocated to support farmers.

This time, the costs may be higher, since the new duties will affect not only China, but also US allies – Canada, Mexico, Japan and the EU countries. This may lead to a large-scale response and new blows to the American agricultural sector. Farmers fear that an escalation of the trade conflict will provoke a drop in prices for products and the loss of foreign markets.

As noted by the New York Times, among the options under discussion is the use of funds from the Agricultural Credit Corporation (CCC), which has the right to borrow up to $30 billion from the US Treasury. However, increasing the limit will require approval from Congress, where some Republicans have previously opposed such measures.

Earlier, the Pais newspaper, citing a high-ranking EU official, reported that Brussels is not setting strict restrictions for retaliatory measures against the United States in the event of the introduction of new tariffs. In addition to symmetrical actions, the European Commission may restrict access of American goods and services to the EU market, as well as prohibit US companies from participating in tenders for government contracts or in projects financed from the EU budget.

Tags: subsidies, USA