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Trump's farm subsidies to mitigate trade war benefit Chinese firms too

30/10/2018

US President Donald Trump's trade war with China has hit American farmers hard, but subsidies to cushion its effects may also help a Chinese-owned piggery in the US too, reports Washington, DC's Vox Media.

Chinese-owned pork producer Smithfield Foods, of Smithfield, Virginia, also qualifies for subsidies. China has responded with taxes on American soybeans, dairy, pork, apples, and potatoes, among other American goods.

The Trump administration spent more than US$25 million in subsidies to the agriculture sector in September, just a few months after announcing a $12 billion in aid to US farmers coping with retaliatory tariffs.

Prices for agricultural produce like soybeans has dropped to a 10-year low since tariffs on trade.

The US has placed tariffs on more than $200 billion worth of Chinese goods in the past year. Beijing has responded with its own tariffs and the country has stopped buying that much from the US.

Source : shippingazette.com