On July 24th, Agriculture Secretary Perdue announced a $12 billion package to help farmers whose incomes have been impacted by the imposition of retaliatory tariffs on their products. Few details were provided on how this package would be implemented.
Effective July 6th, the governments of the United States and China ratcheted up their trade disputes, with each country imposing $34 billion worth of tariffs on each other’s exports in nearly simultaneous fashion. As anticipated, China’s tariffs are heavily focused on agricultural products, with the government of China explicitly targeting products produced in U.S. regions and states that were supportive of the President in the 2016 elections. Other countries, such as Mexico, Canada, and the EU have also imposed retaliatory tariffs on U.S. agricultural products over the last few months.