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    --Danielle

Bailout For Farmers

Trade wars can get messy. This is especially true when the country you’re “waring” against is one of your largest importers. Trump’s use of tariffs to pressure China into liberalizing its economic model may or may not be achieving its intended result. Though one thing is certain. It hasn’t been easy on American farmers. China has retaliated against Trump’s import tariffs by levying tariffs of their own, especially against American agricultural imports. Thousands of farmers depend on the Chinese market. China’s agricultural tariffs have, therefore, devested America’s agricultural industry. With China threatening new tariffs, farmers have been lobbying hard for some sort of federal assistance.

Trump is responding to the agricultural industry’s plight with a strategy reminiscent of Obama’s response to the 2008 financial crisis – bailouts. The Trump administration is pushing for $12 billion in “emergency aid” for farmers to offset the losses caused by China’s tariffs. Even more aid will likely be needed if China makes good on its promise to increase its tariffs. This means the taxpayer will be picking up the $12 billion bill from Trump’s trade war. At this point, the outcome of trump’s trade war has boiled down to whether the Feds or the Chinese Communist Party is willing to spend more on subsidizing domestic industry.

Farmers aren’t the only one’s going through financial troubles. If you’re drowning in debt, feel free to give our office a call. We’re one of the most trusted bankruptcy firms in Auburn, and we would be happy to assist you.

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