Published: Tue, July 24, 2018
Money | By Bruce West

Trump tweets tariffs ‘are the greatest’ and threatens additional levies

Trump tweets tariffs ‘are the greatest’ and threatens additional levies

Ryan's remarks came a couple hours after Trump tweeted that "Tariffs are the greatest!" and threatened to impose additional penalties on US trading partners.

What's the background on the tariffs?

The administration has slapped tariffs on $34 billion in Chinese goods and China retaliated with duties on soybeans and pork.

About one out of every three rows of US soybeans is shipped to China, according to estimates. The imposition of punishing tariffs on imported goods has been a favoured tactic by Trump, but it has prompted USA trading partners to retaliate, creating risks for the economy.

- The government announced a $12 billion plan Tuesday to assist farmers who have been hurt by President Donald Trump's trade disputes with China and other trading partners.

Much of the $12bn in aid will go to farmers of commodities such as soybeans, sorghum, and wheat.

The president highlighted that meeting in another tweet. These steel tariffs have caused the price of steel to jump significantly, which in turn has caused the price of farm equipment to also rise.

Some of the companies invited to set up their products inside the White House say they were both surprised and honored to have been asked to participate. In 2017, Chinese imports to the USA totaled around $5.05 billion. It allows the CCC to borrow up to $30 billion from the Treasury Department to "stabilize, support, and protect farm income and prices".

The funds will come through direct assistance, a food purchase and distribution program, and a trade promotion program.

"Tariffs are the greatest!" he wrote on Twitter. "All will be Great!" he concluded.

Trump has faced opposition from members of his own party in regards to the tariffs.

Tariffs are taxes on imports.

If Trump imposes a 25 percent tariff on imports of cars, trucks and auto parts, it "risks dragging us all down to a game of tit for tat retaliations that ultimately leave consumers in the U.S.as well as in Europe worse off", said Professor Alexander Mattelaer of the Egmont Institute think tank.

A number of White House officials, who have been apprehensive about Trump's use of tariffs, had hoped that other countries would quickly offer concessions before things escalated further.

But the taxes also exact a toll on USA businesses and consumers, which pay more for imported products.

Sen. Ben Sasse (R-Neb.) was even more scathing in his response to this move.

"America's farmers don't want to be paid to lose - they want to win by feeding the world", he said.

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