Trump’s Farm Bailout Opposed by American and Australian Farmers

Donald Trump, Economics, Russia, Trade, Trade Unions, US Politics

Donald Trump has made clear that he believes that trade deficits are indicative of unfair practices, currency manipulation, and other acts of injustice towards the US on behalf of other countries. This has lead to Donald Trump imposing sweeping trade tariffs on goods coming from Mexico, China, Canada, and the EU, all of which have imposed retaliatory tariffs.

The effects of the newly started trade war have already begun to have effects on the US markets, as Harley Davidson and Whirlpool lowered their profit expectations and farmers see their exports decrease dramatically. In response to this, the Trump administration has planned a $12 Billion Dollar bailout for farmers that will give direct payments to adversely affected farmers as well as purchasing their excess product and funnelling it to social security programs.

The American Farm Bureau Federation responded to the measures by saying that, though they appreciate the recognition on behalf of the Trump Administration of the effects of the trade war on their farmers, they want a reversal of the newly implemented tariffs so that the farmers can return to making money from their exports.

The National Farmer’s Federation of Australia has claimed unfair trade practices on behalf of the United States, saying that the subsidies are creating an unfair trade landscape for Australian farmers who are among the least subsidized in the world.

As the trade war escalates, farm subsidies will not be able to cover increasing costs to consumers which may increase inflation and slow down the booming economy that the US is currently living under. It is this author’s opinion that, as the results of the trade war begin to be seen, the time for tariffs is over.

Emilio Garcia
Deputy Editor, The Unshackled
Host of the Front and Center Podcast
Emilio Garcia
Deputy Editor, The Unshackled
Host of the Front and Center Podcast
www.frontandcenter.net.au
@FrntAndCenter

photo credit: neilalderney123 ripening grain near Winchester, UK via photopin (license)