The United States government offered American farmers $12 in emergency relief to ease the pain of the harsh tariffs placed on trade and export products by President Donald Trumps, due to the existing trade disputed with China and other nations ( Thomas, Wiseman & Mascaro, 2018).
Pros of why the Tariff will help Farmers
According to Thomas, Wiseman & Mascaro (2018) , although tariffs imposed have major negative impact on farmers in the short term, it has significant benefits in the long-term. The tariffs help to defend the country against the unfair trading practices in China and other countries. China being the biggest importer of soybeans from the U.S, it has taken advantage of the country for a long time and the tariffs helps to end the unfairness. It may be hurting now but in future, approximately in 5-10 years, America will experience stabilization and elevation of the economy.
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Cons of why the Tariff will hurt Farmers
Gallup (2018) points out that the tariffs makes U.S to risk losing out its export farm products to its competitors like Brazil that produces soybeans or Russia and Ukraine that are large producers of wheat. Additionally, China has responded to the U.S tariffs imposition by pledging to impose politically targeted taxes on American farm exports. This has raised concern among farmers who fear they may get fewer profits for their farm products including sorghum, soybeans, or pork.
How will this affect Imports and Exports
Tariffs imposed on imports exact pressure on consumers and businesses in the United States that pay more for imported products. Additionally, the tariffs has affected exports whereby other nations may decide to shift the trade and supply chains avoid the higher tariffs imposed by the U.S, especially the European exporters (Veras, 2018). Therefore, the U.S imports and exports may be affected significantly and the businesses might go down drastically.
References
Gallup, S. (2018). Trump tapping $12B to help farmers affected by tariffs. Retrieved from: https://www.mprnews.org/story/2018/07/24/trump-planning-emergency-aid-to-farmers-affected-by-tariffs
Thomas, K, Wiseman, P, Mascaro, L. (2018). US announces billions to help farmers hurt by Trump tariffs. Retrieved from: http://www.startribune.com/trump-threatens-more-tariffs-on-us-trading-partners/488978421/
Veras. J. (2018). The Economic Impact of U.S. Tariffs on China. Insight. Retrieved from: https://www.americanactionforum.org/insight/the-economic-impact-of-u-s-tariffs-on-china/#ixzz5QrpzJxVt
