Farmers concerned about trade war, prefer markets to support payments

European stocks jump as US and EU agree to work towards 'zero' tariffs

European stocks jump as US and EU agree to work towards 'zero' tariffs

In 2017, China imported $39.5 billion worth of soybeans. Juncker also agreed to buy billions of dollars more in US soybeans and natural gas.

"As far as the deal is concerned, it seems that US President Donald Trump has got all he wanted", Petr Bystron, Chairman of the legislature's Foreign Affairs Committee for the opposition Alternative fuer Deutschland (AfD) fraction, told Xinhua in an exclusive interview. "A lot of guys are skeptical of it. And we'll see where we get", he said. Farmers face a almost 20 percent drop in the price of soybean harvests this year and more than 15 percent drop in the price of corn, according to the Association.

Michael Brown, a former Symantec CEO and Pentagon adviser, testified to the committee about specific areas where the Chinese government appears to have already comprised USA national security. The tariffs, along with an extremely productive growing season this year have resulted in oversupply, as well as decreased demand. With the yuan weakening, they would quickly conclude that their money would be more secure offshore in a stronger currency.

On the North American Free Trade Agreement talks with Canada and Mexico, Treasury Secretary Steve Mnuchin said he was "hopeful that we'll have an agreement in principal in the near future".

Some farmers have also taken a financial hit from USA tariffs on steel and aluminum, which have increased costs for building materials and farm equipment. Among other things, the retaliation targets agricultural exports such as soybeans, grain, fruits, and nuts. Using food in a trade dispute is a lose-lose.

Duvall explains, "This should help many of our farmers and ranchers weather the rough road ahead and assist in their dealings with their financial institutions".

After the president cited national security in imposing tariffs on foreign steel and aluminum - including from allies such as Western Europe and Canada - retaliation by the European Union and China led us farmers to worry about the impact on them. "But they'd rather have long-term contracts than short-term payments".

"[Trump]'s a great negotiator, he did a good job", said Rep. Roger Williams, R-Texas about the move to soften the administration's stance on some goods.

USDA's Food Purchase and Distribution Program is meant to purchase unexpected surpluses of affected commodities for distribution to food banks and other nutrition programs.

If the European Union manages to unite, however, the bloc could focus on becoming more competitive in other markets, such as China - where many American exports are now subject to tariffs - which would hurt the U.S. So there is an opening for the European Union to sell goods to China that previously the Chinese would have bought from the U.S.

"If companies believe these tariffs are going to last for a long time, they will explore other alternatives".

There are of course many more ways for China to retaliate and they did threaten Trump that they would retaliate everything.

Early indications are that it won't be easy to fix anything by starting a trade war. Those who have not already sold their crop will wait until harvest or later.

While discussing trade during a workforce development conference at Northeast Iowa Community College in Peosta, Trump said, "The farmers love me; they voted for me".

"Our farmers are counting on having access to those markets and the demand they create for USA soy".

Those price drops have ripple effects, too.

The deal boosted share markets initially, and USA industrial shares were stronger on Thursday as fears of a trade war with Europe ebbed. Beijing knows that China is the single largest importer of US soybeans, and that about 96 percent of USA soybeans are grown in 18 states - all but two of which voted for Trump in 2016.

If farmers hurt by President Trump's trade war deserve government assistance, as the president has proposed, than so do ME lobstermen, who are watching the lucrative Chinese market dry up, and the price of the steel in the traps they need rise.

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