The Trump administration is expected to announce on Tuesday a plan to ease fears of a trade war by providing billions of dollars in federal aid to farmers who have been hurt by the massive tariffs imposed by President Trump, according to two sources familiar with the plan.
The administration’s plan could offer upward of $12 billion in emergency aid to U.S. farmers and ranchers, a key constituency for President Donald Trump and Republicans.
Politico reports that the plan will use two commodity support programs in the farm bill, as well as the Agriculture Department’s broad authority to stabilize the agricultural economy during times of turmoil.
Trump has imposed tariffs of 25 percent on imported steel and 10 percent on aluminum, which brought retaliatory tariffs from Canada, Mexico, and the European Union, among others.
The White House also levied a 25 percent tariff on $50 billion worth of Chinese imports. China responded with an equal batch of duties.