Trump and European Union officials strike 'zero tariff' deal to avert trade war


The administration said it would provide up to $12 billion in short-term federal aid.

How it will work: The plan, reportedly in the works for months, has three parts.

Gov. John Kasich (KAY'-sik) says Trump's imposition of tariffs on products from such allies as Canada under national security grounds was "completely absurd", and that now the president is resorting to "farm welfare" when USA farmers want trade. Bob Corker (R-Tenn.) told The Washington Post. "Hopefully soon this ill-thought-out policy will end". "What farmers in Iowa and throughout rural America need in the long term are markets and opportunity, not government handouts". China said it would retaliate, leaving even more USA farm products at risk.

Mark Martinson, who raises crops and cattle in north-central North Dakota and is president of the U.S. Durum Growers Association, said the $12 billion figure "sounds huge" but there are many farmers in need.

The trips apparently failed to bring about a ceasefire with China over soaring trade frictions amid growing animosity, which have boiled into a trade war between the world's two largest economies.

"We hope that it doesn't come to that and that we can find a solution". "At the end of the line, producers are going to be producing them at a loss". "This is a temporary measure, hopefully to show China and other countries they can not bully the caving in on unfair trade practices".

The negotiations at the White House came as Trump has touched off a series of trade disputes with global trading partners, including China, whom he accused earlier Wednesday of employing "vicious" tactics aimed at hurting American farmers.

"The European Union is coming to Washington tomorrow to negotiate a deal on Trade". "But right now, we're the ones that are taking the hit". Officials said Congressional approval is not required - only Congressional notification.

Some Republicans in farm states quickly dismissed the plan, declaring that farmers want markets for their crops, not payoffs for lost sales and lower prices. The Senate has several key races in agriculture-dependent states like Missouri, North Dakota, and in this November.

While the U.S.'s tariffs on imports from China, the EU, Canada and Mexico have been relatively blunt, those levied in retaliation have been targeted with great precision at Trump's base, which includes the producers of products such as pork and soybeans.

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On Thursday, Trump is scheduled to travel to IL and Iowa to talk about the economy and his trade agenda.

Ebert is waiting to see the details of the aid package.

And in a pre-dawn tweet, he said, "Tariffs are the greatest!".

On Twitter, Trump says people "snipping at your heels during a negotiation" will only delay the process. It's as simple as that - and everybody's talking!

"If tariffs punish farmers, the answer is not welfare for farmers - the answer is remove the tariffs", Sen.

Other Republicans backed the president.

"Instead of throwing money at a problem we've helped create, the better option is ... to make it easier for our farmers to sell their goods at fair prices", Johnson said.

On Tuesday, the administration announced a plan to give farmers some relief.

Trump is facing calls from his own party to back down on the tariffs, particularly after the administration announced Tuesday that it will grant up to $12 billion in aid to farmers hurt by retaliatory tariffs. "This bailout compounds bad policy with more bad policy". "It's a misuse of the programs". Ideologically, Republicans are proponents of free trade.