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President Trump announced a $16 billion aid package for American farmers aimed at mitigating the financial costs caused by the trade war with China. About the aid, Trump said, "Our farmers will be greatly helped. The 16 billion [dollar] fund will help keep our cherished farms thriving."

The announcement comes in the midst of repeated rounds of failed negotiations between the United States and China as Trump has imposed tariffs on $200 billion of Chinese goods. This aid package is the second bailout for farmers since the beginning of the trade war. Last November, Trump announced $12 billion in aid for farmers.

Trump has claimed that the tariffs “are paid for largely by China,” not American importers. However, the International Monetary Fund published a study that found that the tariff revenue on Chinese goods has fallen largely on American importers. The communities hit hardest by these tariffs are mostly those that supported Trump in the 2016 election, prompting some worry among Republicans.

Farmers are still deciding what crops to plant this season, and the timing of the bailout has caused some criticism. Senator Chuck Grassley, R-Iowa, said, “We want farmers to make decisions on how many acres of corn and soybeans to plant based on the market and not something the government’s doing.” Farmers are already behind on planting due to the intense flooding across the Midwest.

Trump is expected to meet with Xi Jinping at the G-20 summit in two weeks.

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