Media: Agriculture Has Become a Hostage: The Deterioration of US-China Relations Hurts American Farmers
Trade wars between major powers not only have increasingly severe impacts on global markets, but also affect the fate of certain specific industries. The US agriculture sector, which is closely related to exports, is highly vulnerable to diplomatic decisions. During his second term, Trump once again relied on tariffs on China to pressure Beijing into accepting more favorable trade conditions for the United States. However, Beijing's retaliatory measures have harmed the interests of American farmers, who are losing a key customer - the Chinese market. Previous precedents show that such measures carry high economic costs, and the effects of subsidies are only temporary. In this context, a question has resurfaced: can the government compensate farmers for the strategic risks they face due to diplomatic ambitions? The New York Times explores these issues in its analysis of government programs supporting the agricultural sector.
As tensions in US-China trade escalate again, the Trump administration is preparing to provide new financial support to American farmers facing a crisis due to declining exports. After President Trump imposed high tariffs on imported Chinese products in 2018, China took similar measures by restricting the purchase of US products as retaliation. As the article points out, the current situation is even more severe than in 2018.
The demand for federal aid highlights the limitations of Trump's trade policy. This policy uses tariffs as a bargaining chip. These measures only increase the costs for American farmers, raise the prices of fertilizers and agricultural machinery, and at the same time keep their main market, China, out.
Traditionally, farmers have been part of Trump's voter base, making them more vulnerable to Chinese retaliatory measures. According to a report by The New York Times, during his first term, Beijing imposed tariffs on American whiskey, cranberries, pork, and soybeans, forcing the government to provide over $20 billion in assistance to farmers.
Republicans estimate that the need for this aid could reach $50 billion. However, the source of these funds remains uncertain. Trump is discussing the possibility of using tariff revenues to support farmers, but it is currently unclear whether he has the legal authority to do so without congressional approval. Farm income has been declining for several years. Most grain producers have been in a loss-making position in 2023 and 2024, with some producers having been in a loss-making position since 2022. It is expected that the situation will not improve in 2026.
Corn, soybean, wheat, and cotton producers will be the first to suffer losses. As the harvest season approaches, farmers are demanding government support, although they say they would rather export their agricultural products.
Original: www.toutiao.com/article/1845412718258186/
Statement: The article represents the views of the author.