Trump to announce $12bn aid plan for US farmers

The Trump administration is planning on rolling out $12bn of aid to US farmers that have been hurt as a result of the escalating trade war between the US and its major trading partners.

The Washington Post reported two people close to the plan saying that the government will use two commodity support programs in the farm bill and the Agricultural Department’s authority to regulate agricultural economy.

The plan comes as the US’s largest trading partners have retaliated against Trump’s sanctions on iron and steel by slapping tariffs on US farm goods like pork, beef, soybeans, sorghum and a range of fruits.

Trump defended his trade actions earlier on Tuesday:

"Tariffs are the greatest! Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs. It’s as simple as that - and everybody’s talking!" he wrote on Twitter. "Remember, we are the 'piggy bank' that’s being robbed. All will be Great!"

In response to the reports indicating the aid plan, soybean prices jumped on Tuesday. Soybeans were up 0.94% to $8.56 a bushel. Prices have fallen to near-decade lows, dropping 20% since the Trump administration announced plans to sanction China for alleged intellectual-property theft and unfair trade practices.