On the same day that China and the United States tentatively reached a “phase one” agreement on a trade deal, Agriculture Secretary Sonny Perdue said that he expects producers will still receive the final $3.6 billion in trade war payments President Trump authorized last spring.
If there is no near-term resolution of the Sino-U.S. trade war, the Trump administration will need to spend billions of dollars in additional trade war payments to farmers and ranchers or watch farm income sink, said two economists on Monday. Either way, there would be painful restructuring in the sector, which has collected more than $10 billion in Trump tariff payments this year.
Senate Finance chairman Chuck Grassley conceded one point this week: Steel and aluminum will be excluded from any reform of presidential power to impose tariffs based on national security interests. Even so, there is no agreement among senators on how Congress should reassert its authority over international trade.
Ahead of high-level Sino-U.S. trade talks, President Trump said on Monday that “I would much prefer a big deal” that would end the trade war, while at the same time touting the billions of dollars that farmers are receiving to mitigate the impact of lost exports.
With Sino-U.S. trade talks scheduled to resume next week, President Trump said on Thursday that “China should start an investigation into the Bidens.” He also said his administration was “looking at a lot of different things” to increase pressure on China to resolve the trade war.
President Trump’s standing among farmers rose during the same week that House Democrats opened an impeachment inquiry and a White House document showed Trump asked Ukraine to dig up dirt against a political rival. Some 76 percent of respondents said they approved of the way Trump was handling …
Ninety percent of House Democrats are on record in support of an impeachment inquiry, making House Agriculture chairman Collin Peterson an outlier in arguing against it. Sometimes called the most conservative Democrat in the House, Peterson is nearly alone among members of his committee in questioning the investigation.
Chinese officials are growing increasingly wary of President Trump, suggesting that the risks of making a trade deal with him are greater than the costs of delaying one until after the 2020 election because of fears Trump might renege on an agreement, according to a Bloomberg report.
After a weekend in which Trump lashed out angrily at China, calling its leader "an enemy," Trump was making nice again at the end of the G7 meeting on Monday, praising Chinese President Xi Jinping as a "great man" and saying prospects for a trade deal looked brighter. Soybean prices rose on the news.