Washington: President Donald Trump rolled out another USD 16 billion in aid for farmers hurt by his trade policies, and financial markets shook on Thursday on the growing realization that the U.S. and China are far from settling a bitter, year-long trade dispute.
The latest bailout comes to a top USD 11 billion in aid Trump provided farmers last year.
Speaking during a White House event with farmers and ranchers, Trump said, "We will ensure that our farmers get the relief they need, and very, very quickly. It's a good time to be a farmer. We're going to make sure of that."
U.S. Agriculture Secretary Sonny Perdue said that the first of three payments are likely to be made in July or August and suggested that the U.S. and China were unlikely to have settled their differences by then.
The payments will go to farmers producing roughly two dozen crops, including soybeans, corn, canola, peanuts, cotton and wheat. Dairy and hog farmers are also eligible.
U.S. soybean exports to China have been hit particularly hard, falling from USD 12.3 billion in 2017 to just USD 3.2 billion last year.
Trump continues to say that China is footing the bill for the farm bailout by paying the tariffs. But tariffs are taxes paid by U.S. importers, and studies have shown that American consumers and businesses usually end up absorbing the higher costs.
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Talks between the world's two biggest economies broke off earlier this month with no resolution in sight.
Trump and Chinese President Xi Jinping are expected to discuss the standoff at a meeting of the Group of 20 major economies in Osaka, Japan, next month. There are no current plans for talks to occur before then.
Trump has imposed 25% tariffs on USD 250 billion in Chinese imports and is planning to hit another USD 300 billion worth, a move that would extend import taxes to just about everything China ships to the United States.
Meanwhile, Trump suggested he may be open to linking the dispute over Chinese telecom equipment maker Huawei to the trade talks.
His administration has singled out Huawei as posing a threat to U.S. national security. Responding to a reporter question Thursday, Trump said Huawei is "very dangerous."
But he added, "If we made a deal, I can imagine Huawei being included in some form of a trade deal." Asked specifically what that would look like, he replied, "It would look very good for us, I can tell you that."
As a result of U.S. efforts to restrict commercial cooperation with Huawei, U.S. allies and their companies increasingly have put cooperation with the Chinese giant on hold.
