By Jon Dougherty
(NationalSentinel) As American soybean farmers continue to suffer major economic losses as part of the fallout of the escalating U.S.-China trade war, the Trump administration plans to provide billions in financial relief in the coming months.
Though economic pressure on farmers continues to build as China looks elsewhere for its soybean purchases, most remain loyal to the president and supportive of his efforts to correct the massive trade imbalance with Beijing.
â€œThe Chinese have responded in a kind of stupid way which is actually going to push the costs onto the Chinese by collapsing the value of their currency a little bit,â€ John Dunham, an economic consultant specializing in taxes and regulations andÂ president of John Dunham & Associates, told The Epoch Times.
â€œBecause what theyâ€™re doing then is theyâ€™re literally paying for the tariffs then because theyâ€™re lowering wages, theyâ€™re lowering profits and everything in China,” he said.
Earlier this week, China devalued its currency to its lowest level in 11 years, earning Beijing the mantle of “Currency Manipulator” before stabilizingÂ it again.
â€œWhat the Chinese are doing is theyâ€™re making the currency weak relative to everybody else,â€ said Dunham. â€œWhich means all theyâ€™re doing is making everything everywhere else more expensive, and in effect stealing from their own citizens.â€
He added that Beijing could do whatever it wanted with its economy because the government controls every aspect of it.
As for the Trump administration’s support for farmers, Dunham said it is based on politicalÂ and economic pragmatism.
â€œFarmers tend to get supported, and thatâ€™s gone on since the depression,â€ said Dunham. â€œAnd supporting the farmers also politically is a good thing because farmers have a lot of senators. So they tend to get a lot of handouts and support.â€
According to aÂ report inÂ The Wall Street Journal, the U.S. has collected $63 billion in tariffs over the last year, with about half of that amount coming from China after the Trump administration imposed new tariffs of 25 percent on about $250 billion in Chinese goods.
“Currently, the U.S. is on track to take in $72 billion in tariffs a year, and if additional tariffs of 10 percentÂ are imposed on the remaining $300 billion in Chinese goods starting September 1 as announced, that total could go up as high as $100 Billion a year,”Â The Epoch Times reported.
Trump took to Twitter to outline his support for American farmers.
As they have learned in the last two years, our great American Farmers know that China will not be able to hurt them in that their President has stood with them and done what no other president would do – And I’ll do it again next year if necessary!
— Donald J. Trump (@realDonaldTrump) August 6, 2019
â€œAs they have learned in the last two years, our great American Farmers know that China will not be able to hurt them in that their President has stood with them and done what no other president would doâ€”And Iâ€™ll do it again next year if necessary!â€
Balancing U.S.-China trade has been a central tenet of the president’s economic and foreign policy.
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