WASHINGTON, D.C. – As the Thanksgiving holiday approaches, United States President Donald Trump gives the American farmers a welcoming cash payout, attributing it to the China tariffs, when, in fact, the money is funded from the U.S. government aid package.
Trump, on Twitter, said that the great farmers of the U.S. would be receiving another round of cash, thanks to the China Tariffs and a gift for the upcoming Thanksgiving Day.
Last Friday, the U.S. Department of Agriculture stated that by next week, they would start making the second-round of 2019 trade payment for the farmers of the United States.
This trade payment is the second part of the three-tranche $16 billion aid package that was announced last May. This is the compensation for the U.S. farmers who got tangled between the U.S.-China trade war. China has started imposing tariffs on primary U.S. agriculture products such as pork and soybeans last 2018. This is after the administration of Trump managed to levy duties on the goods from China.
It can be remembered that last Saturday, a high-level phone call between the trade negotiators from both countries stated that it was still a “constructive” call, and they were discussing the core issues in their phase one agreement.
Robert Lightizer, the U.S. trade representative, Liu He, China’s Vice-Premier, and Steven Munchin, the U.S Treasury Secretary, were discussing the core issues of the two sides. All of them agreed that they would keep their communication channels open should any other concerns should be addressed.
Announcement hinted that the two large economies are now “reaching consensus” with their high-level call.
The United States started imposing a 25 percent tariff on Chinese imports that were worth US$250 billion and added another 15 percent to US$112 billion. This coming December 15, a new 15 percent tariff on the Chinese products worth US$156 billion is said to take effect.
Lu said that the meeting of the administers had reached a consensus, and the two sides have also come up with an agreement. Now, it’s up to the presidents of the U.S. and China to make the final pronouncement.
As of today, the China and United States are still trying to come up with an agreement and has reached the phase one of their trade pacts in an attempt to end the tension between two large economies. However, there are still no precise destinations of the trade pact, and the details of the agreement are still yet to be announced.