Trump recently placed tariffs on $34 billion in Chinese goods, which prompted retaliatory tariffs on US agricultural products - everything from soybeans to fresh fruit and meat.
Trump's willingness to buck the advice of his advisors is evidence of an "increasingly defiant...trade strategy", the Post reports.
Agriculture Secretary Sonny Perdue says the plan is meant for short-term relief while President Donald Trump and other officials work on trade deals. "Negotiations are going really well, be cool". "End result is, it's going to cost the consumer more".
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The Agriculture Department announced it will provide up to US$12 billion in aid to farmers hurt by trade tariffs. The EU has a huge stake in the USA industry, where European companies produce nearly 3 million cars a year, accounting for over a quarter of production in the United States. But Rotz said in Pennsylvania, where corn and soybeans are used for animal feed, the impact has been felt most keenly among fruit and vegetable producers and pork and dairy farmers.
It will rely on the Department of Agriculture's authority to stabilize the farm economy by buying excess supply.
It said trading nations like New Zealand work best when everyone agrees on the rules of global commerce, and uncertainty caused by trading disputes is the last thing farmers need.
"We just want it to be a level playing field for our farmers, for our manufacturers, for everybody", Trump said, suggesting the European Union could also be a "big beneficiary" of a revised trading agreement.
The officials said payments couldn't be calculated until after harvests come in.
Zippy Duvall, president of the American Farm Bureau Federation, said the $12 billion package provides a welcome measure of temporary relief, but added they can not overstate the dire consequences that farmers and ranchers are facing with lost export markets. "As I travel the state I continue to hear Iowa farmers want more trade, not aid." .
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The US economy has so far proven resilient to Mr Trump's threat of taking a trade conflict to the next level. Kernen asked the president whether he would implement tariffs on all Chinese goods imported to the U.S.
"This is a short-term solution to allow President Trump time to work on long-term trade deals to benefit agriculture and the entire USA economy", said Sonny Perdue, the secretary of agriculture, in a statement.
"Our farmers have been in nonstop saying they want trade not aid".
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The EU announced earlier that it would proportionally respond to American trade tariffs, as well as initiate proceedings as part of the World Trade Organization (WTO).
A group representing soybean farmers also opposes the administration's plan, and called instead for the elimination of tariffs. The US trade deficit with China in 2017 came in at $375.6 billion, according to Census Bureau data, though adding that figure to this year's data through May comes out to about $528 billion. "I think it will only put out the fire a little bit".
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