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Trump Admin Announces Further $16B in Aid to Farmers As Trade War Continues

The U.S. government announced a further $16 billion in aid to be paid out to the country’s farmers as the trade war with China continues.

Trade tensions are ongoing and negotiations between the two countries have apparently stalled, after talks conducted earlier in May ended without a deal, and President Trump initiated another round of tariffs on $200 billion of Chinese goods. This $16 billion in aid follows upon a $12 billion aid package executed last fall. The timing of the payout, just as farmers are planning their spring planting is coming under scrutiny, as it is important that farmers plan their crop volumes based on the market, and not on artificial government support.

Another challenge facing farmers is that in order to receive government funding, a crop must be planted, however, due to massive flooding, many U.S. corn and soybean farmers may have missed the window for planting this spring.

The next meeting between President Trump and China’s President Xi Jinping is expected to happen in June at the G-20 Summit.

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