The ongoing trade tension between the US and China has had some adverse effects on American farmers, who have been struggling to make profits after China imposed a 25% tariff on imports. While the tariff was recently halted for a time, stock in certain produce that the US trades to China such as soybeans, pork, and beef has remained fairly low in the weeks following the truce. In fact, China purchased thousands of tons of soybeans, a move that many claimed to be a victory for American farmers. However, the actual effect of the purchase is not being seen by the growers struggling this year.
It appears that much of the damage has already been done, and many of these farmers are going belly up and trying their best to maintain while negotiations are still being conducted by politicians in both countries. Promises of trade going back to normal, or in fact being more profitable, have as of yet gone unanswered, and bankruptcy among farming communities has gone way up. To offset the problems caused by the trade dispute, a second round of federal aid has been approved for farmers. There is now $9.6 billion in payments meant to help farmers through the trade uncertainty, which President Trump approved of recently. According to Trump, these payments are for damages caused by “unjustified trade retaliations by foreign nations.” While the aid is sure to help keep some farmers afloat, it has been estimated that US farmers will have lost billions because of the ongoing dispute.
