Trump's trade wounds force White House into action

"The White House says the payments for row crop farmers will be funded with revenue from the trade policies that caused much of the farmers' economic pain in the first place. "This money would not be possible without the tariffs," Trump said at a farmer roundtable. "Without it, we wouldn't be able to help you," he added. Trump noted that the White House needs the power to impose tariffs quickly, which the Supreme Court is expected to rule on soon. Zoom in: China is slowly resuming purchases of U.S. soybeans after pausing buying earlier this year, a boycott that came as a retaliation to Trump's trade policy."

"In addition to revenue drying up, production costs are soaring: "Elevated tariff rates on key inputs ... have become a significant cost factor in farm production economics," economists at the American Soybean Association wrote last week, describing a "precarious" financial situation. Between the lines: The move to heal the financial damage to farm country, an important hub of Trump supporters, is the latest attempt to address the tariff fallout that has contributed to Americans' souring economic sentiment. Last month, the White House announced it would roll back tariffs on a slew of grocery items. Even with Trump's tariffs in place, China said that it had reached an unprecedented milestone - a trade surplus of over $1 trillion so far this year. Chinese exports to the U.S. have fallen by roughly one-fifth this year in the wake of Trump's tariffs."

Farm aid payments for row crop farmers will be funded with revenue generated by tariffs that contributed to farmers' economic pain. The White House emphasized that the aid depended on tariffs and said it needs authority to impose tariffs quickly as a Supreme Court decision looms. China is slowly resuming U.S. soybean purchases after an earlier boycott in retaliation to U.S. trade policy. Elevated tariff rates on key inputs have increased production costs, creating a precarious financial situation for farmers. China reported a trade surplus over $1 trillion while exports to the U.S. fell roughly one-fifth this year.

Read at Axios