Donald Trump strikes trade deal with E.U

'Making America 1929 Again': GOP Sen. Sasse Rips Trump on Tariffs, Planned Farmer 'Bailout'

Trump Administration to Offer Multibillion-Dollar Bailout for US Farmers

What's the background on the tariffs?

German producers and supplies employ more than 118,000 people at about 300 plants and manufacture more than 800,000 vehicles per year in the US - with more than half of the cars being exported, according to figures provided by the German automotive industry.

Deere & Co jumped 2.7 per cent, while Caterpillar Inc gained more than 1 per cent and AGCO Corp rose 0.5 per cent. Soybean futures, hit hard by China's retaliatory tariffs, rose 1.2 per cent and hit their highest in two weeks as traders bet farm aid would improve demand, reducing a current surplus supply.

A number of other Republicans have also criticized Trump for both the tariffs and the ensuing bailout.

Soybean farmers have also been hurt by falling soy prices tied to these tariffs.

Mr. Trump imposed a 25-percent tariff on steel and a 10-percent tariff on aluminum imported from the European Union in June, and the EU retaliated with "rebalancing" tariffs on USA steel, agriculture and other products soon after. These steel tariffs have caused the price of steel to jump significantly, which in turn has caused the price of farm equipment to also rise.

The European Union has said it is prepared to discuss lowering tariffs "in all sectors" if the USA drops its punitive levies on aluminium and steel, ahead of a crunch meeting today.

To date, every time that the Trump administration has imposed a tariff on China, China has imposed an equal tariff on US goods.

Tariffs are taxes on imports. In 2017, Chinese imports to the USA totaled around $5.05 billion.

"It does not make any sense to me as an economist", says Ohio State University professor Ian Sheldon, predicting the action will distort worldwide commodity markets and possibly trigger a dispute filing at the World Trade Organization.

Where is the $12 billion coming from?

The first assistance is expected to be distributed by the beginning of September.

President Donald Trump proclaimed that "Tariffs are the greatest!" in warning US trade partners that he'll impose more sanctions unless they negotiate a "fair deal" as negotiations with European officials are to get underway at the White House. And American consumers are the ones who get hit with US -imposed tariffs.

"Instead of throwing money at a problem we've helped create, the better option is to take action to make it easier for our farmers - and manufacturers - to sell their goods at fair prices to consumers around the world".

"If tariffs punish farmers, the answer is not welfare for farmers - the answer is remove the tariffs", Paul tweeted.

Sen. Ben Sasse (R-Neb.) was even more scathing in his response to this move.

Still, some Republicans several months ago had warned against using the CCC as part of a trade-war related bailout, saying it could distort market forces and pay farmers for products they don't produce. Ryan added that while Trump is seeking "a better deal for Americans, better trade agreements - I just don't think tariffs are the way to go, and our members are making that pretty clear".

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