As US soybean farmers feel the weight of Trump’s trade war, the president’s staff considers dipping into federal Treasury funds to shield them from Chinese retaliatory tariffs.
Consideration to use Treasury funds comes at a time when the national debt is fast approaching record highs. By 2019, the federal budget deficit is expected to reach $1.1 trillion.
The US deficit is soaring toward such a perilous high thanks in part to the 2018 Republican tax cuts.
Secretary of Agriculture Sonny Perdue says that the USDA is considering the use of the Commodity Credit Corporation (CCC) to subsidize farmers. Further details have yet to be revealed.
Some farmers don’t necessarily want a short-term fix to the president’s problem, but a long -term solution instead.
“I just don’t like the idea of the government coming up with some balm to spread over wounds that are self-inflicted. It seems to be a huge moral hazard problem,” USDA chief Joseph Glauber reportedly told The Financial Times.
Concerns stem from Chinese retaliations to the president’s tariffs, which went into full effect at 12:01 a.m., Friday, July 5.