Trump administration weights using customs tariff income to save farmers – who have been in definitions

“There may be circumstances in which we are seriously discussed and announced soon,” Rollins He said Financial times On Wednesday, adding that the use of induction income to finance the package will be “completely potential”.

In April, Rollins announced the Trump administration Consider providing aid For farmers after commercial groups Cash For tariff plans.

The administration’s commercial policies have already affected the price of the tools needed for farmers, including a tariff rate of more than 15 % on self -drive machines such as tractors and about 25 % on herbal pesticides and some pesticides, partly due to commercial conflicts with Canada, according to August. Data From monitoring agricultural trade at Northern Dakota State University. The manufacturer of agricultural machinery John Dyer He has Beware of the negative impact of definitions On her own business, including $ 600 million from fees in the fiscal year 2025.

Revenge definitions from China were exposed as a result of the trade war, and soy farmers, who previously relied on China, have fallen into more than 20 % of soybeans exports. Chinese definitions on the crop reached 34 %, making Egyptian soybeans in the United States more expensive for Chinese importers than beans than Brazil. This is effectively the United States lying out of the Chinese soy -soy market before the fall harvest season, according to the American soy -soy society.

The trade group said in August. a report.

Certainly, not everyone in the agricultural industry is pregnant with Trump’s commercial policies. Some farmers – like Shrimp farmers in IndianaThey celebrate fees to prevent cheap foreign competitors from obtaining the American market share.

The US Department of Agriculture has blamed the agricultural conflicts today to former President Joe Biden, saying that his administration inherited a good economy for the farm, but “eradicated” Trump’s efforts to maintain low interest rates and open new markets, which led to a deficit in agricultural trade worth $ 50 billion.

Agricultural exports reached the highest level ever in 2022 under the Biden Administration, according to American Ministry of Agriculture data. But despite the record, in 2023, import imports exceeded $ 21 billion.

The US Department of Agriculture has not provided luck Any additional information about the form of potential farmers rescue program.

A spokesman for the US Department of Agriculture told luck In a statement.

How will possible rescue affect farmers?

A rescue plan from the Trump administration may help connect the economic holes left by the trade contradictions, but it is possible that the corrosion will remain long -term in some agricultural markets, according to Windung Chang, associate professor of applied economy and politics at the College of Business Administration at Cornell University.

“It will compensate for immediate economic losses due to definitions, but it does not necessarily improve the long -term competitiveness of agriculture on the world stage,” Zhang told Zhang. luck. “This does not help in addressing the reliability of the United States in using these policies on the global stage as well.”

Zhang said that a similar scenario was operated in 2019, after a large number of customs tariffs shown in his first term. Between mid -2018 and 2019, American farmers lost $ 27 billion in US agricultural exports, according to 2022 a report From the US Department of Agriculture. As a result, Trump gave us farmers 28 billion dollars in subsidiesZhang said that all these losses were all.

However, economic effects remained. While the United States has regained some of the quota of the soybean market in China from Brazil, this market share remained less than the levels of tariffs before the traditional re -traditional after a commercial deal, according to the US Department of Agriculture’s report.

Despite the long-term health damage, farmers-a Savior Financial Department From Trump’s- It was historically supportive of definitions and administrative assistance, and seeing the possibility of long-term financial gains. According to 2019 Ticket From Zhang and his colleagues, more than half of the farmers in Minnesota, Iowa and Ilinoy were somewhat supportive or strongly of Trump’s definitions of Chinese products, although 76 % of them recognize the United States farmers will take great success from the fees. More than 60 % of American agriculture admitted the markets as a result of definitions.

Zhang explained that these farmers will likely maintain their positions on the Trump administration, but the impact of this round of definitions will be more difficult to predict. Unlike Trump’s first period, when the administration went primarily after trade with China, Trump imposed a tariff on many countries, which increased the complexity of the United States in the global agricultural export markets.

“There are many players and many potential products, and there are many moving parts that … are really difficult to know which of them will be affected,” said Zhang.

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