Trump Insists Farmers Are”Really Happy” With Trade Deal

Trump Insists Farmers Are”Really Happy” With Trade Deal

Update: As criticism of Trump’s trade deal from the farming community echoes across the American business press, President Trump has stepped up to insist that farmers are actually “really happy” with both the China deal and USMCA.

The farmers are really happy with the new China Trade Deal and the soon to be signed deal with Mexico and Canada, but I hope the thing they will most remember is the fact that I was able to take massive incoming Tariff money and use it to help them get through the tough times!

— Donald J. Trump (@realDonaldTrump) January 16, 2020

Of course, as we pointed out yesterday, farmers have good reason to be upset with the deal, even though the trade war with China has been devastating for growers of soybeans and other farm products primarily exported to China.

From the BBC:

Loser: Farmers and manufacturers

The new deal commits China to boost purchases in manufacturing, services, agriculture and energy from 2017 levels by $200bn over two years.

Mr Trump has said that could include as $50bn worth of agricultural goods a year.

But other officials have put the figure lower and analysts are sceptical. So far, the primary effect on business has been pain.

Farmers, who have been targeted by China’s tariffs, have seen bankruptcies soar, prompting a $28bn federal bailout.

Among manufacturers, the Federal Reserve has found employment losses, stemming from the higher import costs and China’s retaliation.

Over the long-term, American firms may reroute supply chains away from China to avoid the tariffs – but that’s an expensive prospect.

As Bloomberg’s Tracy Alloway adds: “A lot of American farmers are going to be disappointed with this trade agreement. Soybean prices are plummeting after the deal failed to include a specific $ amount for China’s purchases of U.S. soy. All this just a few months before planting season!”

* * *

If you thought yesterday’s 90-minute press conference bukkake – where President Trump demanded that a senior JPM executive thank him for the bank’s record profits – would be the extent of the administration’s trade war ‘victory lap’, then you clearly underestimated this president’s commitment to winning.

In a tweet published Thursday morning, President Trump gloated that he had just struck “one of the greatest trade deals ever made!”

He added that the teal is “good for China, and out long term relationship,” before adding that “250 Billion Dollars” will be returning to the US thanks to Beijing’s promise to scale up imports.

The US is now “in a great position” to kick off negotiations for Phase 2, and advised that passing USMCA is “NEXT!”

One of the greatest trade deals ever made! Also good for China and our long term relationship. 250 Billion Dollars will be coming back to our Country, and we are now in a great position for a Phase Two start. There has never been anything like this in U.S. history! USMCA NEXT!

— Donald J. Trump (@realDonaldTrump) January 16, 2020

Earlier this week, Mitch McConnell said the Republican dominated senate might pass USCMA by the end of the week, making it extremely likely that the deal will make it to the president’s desk in the coming days.

Meanwhile, Dems are doing everything they can to redirect news coverage away from Trump’s trade triumph (even if the ‘fragile’ deal does nothing to resolve the US’s biggest gripes about Beijing) and toward their impeachment circus.

In a second tweet sent 20 minutes later, Trump took a shot at “Cryin Chuck” Schumer, whom Trump insisted “is saying privately that the new China Trade Deal is unbelievable” even though he “publicly knocks it whenever possible.”

“That’s politics, but so bad for our country,” Trump added.

Cryin’ Chuck Schumer is saying privately that the new China Trade Deal is unbelievable, which it is, but publicly he knocks it whenever possible. That’s politics, but so bad for our great Country!

— Donald J. Trump (@realDonaldTrump) January 16, 2020

Free-trade Dems including Schumer persistently discouraged Trump from mixing it up with the Chinese. So it’s only fitting that they’re trying to distance themselves from Trump’s trade agenda.


Tyler Durden

Thu, 01/16/2020 – 10:29

Tags


Read More