Source: Tom Johnston, MEATINGPLACE, 7/31/18



As more details emerge on President Trump’s $12 billion aid package for U.S. farmers reeling from China’s retaliatory tariffs, the administration’s dealings with the European Union also could help ease their strain.

Negotiations for lower tariffs with the EU have succeeded in isolating China in its trade war with the United States, particularly as the EU has offered to buy large amounts of U.S. soybeans and beef, Larry Kudlow, director of the National Economic Council, said on CBS’s “Face The Nation” Sunday talk show.

Success with the EU, and a trade deal nearing with Mexico, puts pressure on China to reach an agreement with Washington, which imposed tariffs on Chinese steel and aluminum and $35 billion worth of products. China responded with 25 percent tariffs on $34 billion worth of U.S. products.

Among those U.S. products are beef and pork, and producers have a lot to lose. The National Cattlemen’s Beef Association estimated the China row could cost the U.S. beef industry $70 million this year and cut off access to a market worth a potential $4 billion per year. The U.S. Meat Export Federation estimated the tiff could cost the U.S. pork industry $770 million from May through December, or a full-year loss of $1.14 billion.

Last week, USDA announced a $12 billion in aid offset what it had estimated would be an $11 billion impact of the “unjustified retaliatory tariffs on U.S. agricultural goods.”

Agriculture Secretary Sonny Perdue said in an interview with Reuters that cash payments from that package could reach farmers as soon as late September. The plan would include between $7 billion and $8 billion in direct cash relief, he said, acknowledging that, “Obviously this is not going to make farmers whole.

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