President Trump announced $12 billion in aid to U.S. farmers as the agricultural sector grapples with the impact of his sweeping tariffs.
The industry has been particularly hard hit by the president’s changing trade policies, as farmers struggle to sell their crops and costs rise. Soybean exports have been a particular focus, with trade slowing to a crawl as China all but halted purchases before the two countries agreed to a trade truce in October.
Trump said farm relief funding would come from a “small portion” of tariff-related revenue. While U.S. farmers welcome the support, they say they need an aid package of more than $12 billion to fully offset depressed crop prices and lost export opportunities caused by Trump’s trade war.
The farm bailout comes as Americans are increasingly worried about prices. In an interview published on Tuesday, Trump acknowledged that he might seek “some” additional exemptions, weeks after his administration slashed tariffs on goods including beef, coffee and bananas.
Democrats have pushed to lower food prices after winning several key state and local races, with candidates emphasizing affordability concerns. In recent weeks, Trump has also raised the possibility of providing many Americans with a tariff “dividend” in the form of $2,000 checks.
The U.S. Supreme Court is poised to rule on the legality of most of the tariffs in the coming weeks. The president invoked the International Emergency Economic Powers Act (IEEPA) to impose blanket tariffs on goods from other countries. While publicly supporting the high court’s ruling, Trump claimed that the “full benefits” of the tariff policy will take effect soon, arguing that foreign buyers who have been hoarding inventory will be forced to buy more goods.
Read more: What Trump’s tariffs mean for the economy and your wallet
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Trump acknowledged that Americans are “paying some price” for the tariffs. Democrats estimate that the average American household has paid nearly $1,200 in additional costs as a result of Trump’s tariffs.
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Indonesia has said it hopes to reach a trade agreement with the United States by the end of 2025. Reports emerged this week that the trade deal between Washington and Jakarta is at risk of unraveling as Indonesia fails to live up to its side of the deal.
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Trump has threatened to impose an additional 5% tariff on Mexico if it does not provide additional water to help American farmers. Trump accused Mexico of violating a water-sharing treaty between the two countries.
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Trump on Monday approved Nvidia (NVDA) selling some of its more powerful H200 chips to China. The US president said Chinese President Xi Jinping had responded “positively” to the move.
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Several U.S. companies, including Costco (COST), have filed lawsuits against the U.S. government and are demanding a refund of the tariffs, as they believe Trump’s tariffs will be struck down by the U.S. Supreme Court. If a court rules against Trump’s tariffs, the president could be forced to repay billions of dollars in import revenue, the New York Times reported.
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Americans are paying tariffs, which is about $1,200
President Trump said last month that the American people were “paying something” for the tariffs.
Well, now Democrats appear to have figured out what the real costs will be.
Democrats on the bicameral Joint Economic Committee (JEC) estimate that the average American household will pay nearly $1,200 in additional costs as a result of Trump’s tariffs.
Hill reports:
Read more here.
