USDA invests $12bn for farmers affected by retaliatory tariffs

By Ashley Williams contact

- Last updated on GMT

The funds will be used for farmers to meet costs of disrupted markets
The funds will be used for farmers to meet costs of disrupted markets
The US Department of Agriculture (USDA) has offered US$12 billion for farmers who have been impacted by retaliatory tariffs placed on the country.

The funds will be used for farmers to meet costs of disrupted markets following retaliatory tariffs placed on agricultural goods from the likes of Mexico, Canada, Russia and China.

The move was directed by US President Donald Trump, who told USDA secretary Sonny Perdue to construct a short-term relief strategy to protect agricultural producers while the President comes up with a long-term plan to open up more markets and help farmers compete on a global scale.

The $12bn fee will exceed the estimated $11bn impact of the retaliatory tariffs, with a large amount of the tariffs being targeted towards farmers, as well as the pork and beef industry.

The President promised to have the back of every American farmer and rancher, and he knows the importance of keeping our rural economy strong​,” said Perdue. “Unfortunately, America’s hard-working agricultural producers have been treated unfairly by China’s illegal trading practices and have taken a disproportionate hit when it comes illegal retaliatory tariffs. USDA will not stand by while our hard-working agricultural producers bear the brunt of unfriendly tariffs enacted by foreign nations.​”

Trump’s tariff hike on steel and aluminium imports, as well as washing machines and solar panels imports​, has caused major disruption among the international meat industry, sparking the beginning of the trade war.

Russia and China were two of the first key international markets to disagree with Trump’s decision and targeted the US’ agricultural sector.

After months of disagreement and no resolution, Russia’s federal government authorised a bill to end all Russia-US trade in agriculture​, while China has also had long-running frictions with the US.

Recently China imposed 25% retaliatory tariffs​ on 545 US products, including beef, in response to the US’ increased levies on Chinese goods.

The US faced further retaliations from Mexico and Canada on pork and beef respectively.

Mexico announced a tariff increase on US pork​ by 10%, which later doubled to 20%, while Canada slapped tariffs on $170m worth of US beef products.

Related news

Show more

Related products

show more

Webinar Case Study – Editorial Webinar

Webinar Case Study – Editorial Webinar

William Reed Business Media | 03-Dec-2019 | Case Study

Download our case study to learn how GlobalMeatNews generated brand awareness and leads for its sponsors with its October 2019 editorial webinar.

The unique natural anti-oxidant for meat applications

The unique natural anti-oxidant for meat applications

Kancor Ingredients Limited | 28-Feb-2019 | Technical / White Paper

Fresh meat is preferred in bright red colour but is highly prone to oxidation and is colour sensitive to extracts. Kancor’s OxiKan R, a highly refined...

Microbiological safety of raw-fermented sausages

Microbiological safety of raw-fermented sausages

Jungbunzlauer | 18-Feb-2019 | Technical / White Paper

Raw-fermented sausages are prone to the contamination with pathogens such as Salmonella and Listeria. Jungbunzlauer gives a new impetus to the exploration...

Related suppliers