The Trump administration has increased support for American farmers because of the US-China trade war.
According to the Washington Post, each affected farmer got 125 thousand last year. This year payments were increased to 250 thousand dollars. However, the legal entities producing soybeans, vegetables and pork are reported to get up to 500 thousand dollars. According to the publication, half of the farmers will receive financial assistance in late August.
US President Donald Trump announced in May that he was allocating $16 billion to help American farmers amid competition from China. He explained that the funds will be derived from duties that are imposed on Chinese goods.
The assistance program is designed so that large corporations do not receive big payouts to the detriment of small farmers, as it happened last year.
Democrats and farmers has given mixed reviews to the assistance program. According to Chair of the Senate Democratic Policy Committee Debbie Stabenow, these payouts do not compensate for the loss of sales markets and are unfairly distributed among the affected producers.
The last round of the US-China trade negotiations ended in mid-May in vain, amid another increase in US duties on Chinese goods. The U.S. raised duties from 10% to 25% on Chinese imports amounting to about $200 billion. US President Donald Trump also ordered to begin the process of increasing duties on all remaining imports from China, which is estimated at about $300 billion. In response, the Ministry of Finance of the People’s Republic of China reported that Beijing has imposed increased duties on imports of goods from the United States in the amount of $60 billion since June, 1.
Natalia Veselnitskaya – official website