Administration officials are scrambling to come up with a way to placate furious farmers.
By Damian Paletta and Damian Paletta Reporter covering economic policy Email Bio Follow Erica Werner Erica Werner Congressional reporter focusing on economic policy Email Bio Follow May 14 at 9:05 AM White House officials are scrambling to come up with a new bailout plan to placate furious farmers after President Trump’s initial idea of donating unused crops to poor countries came under scrutiny, people briefed on the planning said.
“I’m not sure if you talk to him face to face he hears everything you say,” said Grassley, who has emerged as one of Trump’s chief critics on the administration’s trade approach in recent weeks.On Tuesday, Trump wrote on Twitter that “our great Patriot Farmers will be one of the biggest beneficiaries” of his trade policies. He said that would come either from China buying more U.S. products or U.S. government making up the difference.
Sen. John Hoeven , who chairs the agriculture appropriations subcommittee, said U.S. officials would use a type of “market facilitation payment” but also make direct purchases on behalf of the government from U.S. producers. But when broader trade talks faltered last week and Trump slapped 25 percent tariffs on $200 billion in Chinese goods, China immediately moved to retaliate, and a number of U.S. farm products will be impacted. China is one of the biggest markets for U.S. farm exports, and a shift in demand can leave many farmers without alternatives.
In addition, Grassley said there are strict limits on how U.S. officials could simply donate food to poor countries. He said the way Trump has discussed it could violate World Trade Organization rules.
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