“the White House is reportedly confronting a very different reality: one in which Trump’s trade war leaves many Americans worse off, with farmers likely to be hit the hardest.”
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“Agriculture Secretary Brooke Rollins told reporters last week that the White House has asked her to “have some programs in place that would potentially mitigate any economic catastrophes that could happen to some of our farmers” as a result of a trade war.”
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“The time to work that out might be running short. Trump has promised to ramp up his trade war with Mexico and Canada in early April, and the administration also plans to start slapping so-called “reciprocal tariffs” on imports from other countries on April 2. As the various trade wars escalate, farmers are likely to be on the front lines—because American agricultural exports are an easy target for retaliatory tariffs from other countries.”
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“That’s exactly what happened during Trump’s first term, when his trade war with China caused American farmers to lose a sizable chunk of one of their largest export markets. When farmers complained about it, the Trump administration provided a $28 billion bailout via a New Deal–era program at the Department of Agriculture.
Some of that is already happening. In response to tariffs imposed by Trump in February, China slapped new tariffs on a wide range of American farm exports, including beef, chicken, corn, cotton, dairy, fruits, pork, soybeans, and various vegetables. Both Canada and Mexico have indicated that they plan to retaliate against American tariffs with new levies targeting American agricultural goods.”
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“That’s the nasty thing about trade wars. Not only do they harm manufacturers and consumers seeking to buy raw materials and finished goods from abroad, but they also harm domestic producers (like farmers) who lose access to foreign markets and therefore earn less money. Tariffs hurt Americans who want to eat avocados from Mexico, and Americans growing soybeans to sell there. There are a lot more losers than winners—and that’s before taxpayers get put on the hook for bailouts.
There should be no taxpayer-funded bailouts for American farmers who get burned by Trump’s trade wars. If the White House is concerned about the consequences that higher tariffs will have on American agriculture, there is an easy solution: Don’t impose them.”