Potential trade war President trump with China could score American farmers. Now trump is trying to find ways to protect them, looking to revive the obscure Depression-era programs and potentially rejoining the free trade agreement, which he pulled out during his first week in office.
If trump ends actually enter the TRANS-Pacific partnership, a huge trade agreement he refused on 23 January 2017, he will perform one of his signature campaign promises and pulling off one of the most breathtaking change in the policy of his presidency. Trump won the White House for anti-free trade platform and spent several months, arguing that the deal will kill American jobs.
Now he’s looking for a solution to the problem is very much its own Affairs. The President is weighing whether to impose duties to the amount of Chinese exports to the United States to punish China for stealing intellectual property from American companies up to $ 150 billion. Beijing has promised to retaliate against the United States with their rates and returns in the agricultural sector of the United States.
China has said it will impose 25 percent tariffs on agricultural crops, such as soybeans, corn and wheat, which are grown in those parts of the country that are home to some of the strongest political supporters of trump. American farmers growing SOY, especially vulnerable China is about 60 per cent of its international sales.
The Chinese measures will be a big problem from an economic point of view for farmers, and potentially a big problem for trump and his party heading into the midterm elections this fall. The White house is considering the possibility of dust Commodity credit Corporation, the program created during the great Depression farmers help. The program can be used to buy the harvest from farmers if they are hit hard by Chinese tariffs.
It can also help the trump card on the table before China will retaliate.
“This is a way to strengthen its authority for negotiations [with China] in front, and means to divert complaints from the farm senators and congressmen,” said Gary Hufbauer, senior researcher at the Peterson Institute for international policy.
Trump could theoretically convince China that the tariffs on American farmers would be pointless, as they will be under the protection of the US government regardless.
Still, at least there is much enthusiasm for the revival of old program. Rejoining the TPP, meanwhile, will be extremely difficult logistics. Trump wants to shield American farmers from the consequences of their own policies. It’s not clear that he can.
Trump proudly pulled us out of the mammoth trade deal. The return would be hard.
The potential reversal of the trump on the Internet-TES stunned lawmakers from both parties.
On Thursday, the President said the farm-the governors and lawmakers that he has directed his advisers to look at the entrance to the Covenant in order to open up new markets for American farmers. It is a remarkable about-face, given its constantly tough rhetoric about the Covenant, one of the major political achievements of the Obama administration. It has been designed to eliminate trade barriers among 12 countries in the Asia-Pacific region, representing 40% of world GDP, but trump called it “one of the worst trade deals” and pledged to withdraw from him at the entrance to the White house.
The white house said that trump is open to return to the TPP if it can be improved. “The President has repeatedly said that he was much better, including in his speech in Davos earlier this year,” said Deputy press Secretary of the White house Lindsey Walters said in a statement. “To this end, he asked [U.S. Trade representative Robert] Lighthizer and [the Director of the National economic Council Larry] Kudlow to take another look at whether or not a better deal can be negotiated.”
Republican lawmakers support free trade, welcomed the news with open arms. “The best thing the US can do to push back now against the Chinese cheating is to lead the 11 Pacific countries that believe in free trade and the rule of law,” Nebraska Senator Ben Sasse said in a statement.
if trump don’t end up trying to recover from the TTP, it will be a process that can take months or even years. This is a problem, given that the US and Chinese rates may go into effect in a few weeks. All this means that the card does not have enough time to find ways to protect American exporters from all consequences of their protectionist policies.
Sourse: vox.com
