News media report that the Trump administration is pondering farm subsidies to compensate for trade losses arising from Trump’s tariff wars and retaliations.
The main issue is China as both U.S. President Donald Trump and China ratchet up tariffs.
Pork and soybean exports to China will be hard hit with tariffs so high that sales might stop.
The backups could impact Canadian prices but might also open opportunities for Canadian exports to China, despite tariffs it placed in response to Canada’s 100 per cent tariff on Chinese-made electrical vehicles.
The potential subsidy package would echo past Market Facilitation Programs rolled out during previous trade disputes, particularly with China.
According to recent reports, the discussions are in early stages, with no finalized details.
However, sources suggest the aid could be designed to assist producers affected by retaliatory tariffs and disrupted export markets, including pork producers who have long been vulnerable to volatility in global trade.