US President Donald Trump said on Friday May 10 that he will use the proceeds from taxation of imports of Chinese goods to purchase US agricultural products and distribute them among developing countries.
“Based on tariffs in excess of $ 100 billion, we will buy agricultural products from our farmers in larger quantities than China has ever made, and send it to poor and starving countries in the form of humanitarian aid,” Trump tweeted.
Chinese resellers are due on May 10 to discuss with US officials in Washington how to overcome the annual trade war, which brought soy and corn prices down by 20%. However, analysts do not expect a solution in the near future.After U.S. resellers stunned markets by accusing China of retreating from a deal that was due to be released Friday, it is questioned whether China will fulfill its goodwill promise to buy 20 million tons of soybeans this year from the US .
Farmers are a key support base for Trump, hoping to be elected for a second presidency next year. Government assistance to farmers will be the second policy measure Trump has taken to support farmers' incomes in the face of falling prices.
Last year, his administration launched a $ 12 billion aid program aimed at compensating farmers for low prices, buying surplus goods from the market, and sending sales missions abroad to find new markets.The vast majority of aid ultimately goes to soybean farmers, who were actually squeezed out of the markets of China, importing about two-thirds of all soybeans sold internationally.