It is a clear signal US President Donald Trump is determined to stick with tariffs as his weapon of choice in the conflict. That American farmers have been hard hit is no accident.
"We also will resolve the steel and aluminum tariff issues and we will resolve retaliatory tariffs". This caused the price of sorghum to drop significantly, and forced ships full of sorghum heading to China to change course.
Trump had offered a similar sentiment Tuesday evening, when he suggested on Twitter the European Union and USA drop all tariffs, barriers and subsidies - although he predicted that the bloc would not be ready for such a proposal. "As long as the steel and aluminum tariffs are ongoing, the European Union will not negotiate on a high-level basis".
During their Oval Office meeting, Mr. Trump said he expects something "very positive to take place" during their discussions, but was adamant that a "level playing field" is needed for USA farmers and manufacturers.
Brussels already retaliated against the steel and aluminium tariffs, imposing punitive duties on over US$3 billion (S$4.09 billion) of U.S. goods, including blue jeans, bourbon and motorcycles, as well as orange juice, rice and corn.
His administration has levied tariffs on $34 billion worth of goods from China.
Trump campaigned on a vow to get tough on trading partners he accuses of taking advantage of bad trade deals to run up huge trade surpluses with the U.S.
Where is the $12 billion coming from?"President Trump can not fix this self-inflicted crisis with a $12 billion slush fund". This aid package can be authorized without congressional approval because it uses the Department of Agriculture's Commodity Credit Corporation, a Depression-era program authorized to borrow up to $30 billion in order to "stabilize, support, and protect farm income and prices".
Juncker said the two sides also agreed to work together to reform the World Trade Organization, which Trump has vehemently criticized as being unfair to the U.S. "All will be Great!" he concluded. This leads to negotiations, which produce an impossibly ambitious and thoroughly vague "solution" that allows Trump to boast that he has averted a crisis of his own making.
Some are already saying this is a step in the right direction, and shows the President is sticking to his word. The U.S. and China have threatened to impose 25 percent tariffs next week on $16 billion of each other's goods.
'Tariffs are taxes that punish American consumers and producers, ' Kentucky GOP Sen. 'If tariffs punish farmers, the answer is not welfare for farmers - the answer is remove the tariffs'.
"I want to see our long term economic path that we're on be solid, and certainly, a long-term solid economic path is not paid with bailouts". He asked them to "just be a little patient".