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Trump administration is months away from direct payments to farmers…Secretary Rollins has said the administration would consider making payments to farmers in the case of any economic hit from tariffs. Rollins stated, “we are months, literally months away, from understanding if that’s going to be necessary. During his first administration, Trump paid billions to farmers to offset losses from a trade war with China. Rollins has said she has spoken with Trump’s first-term Agriculture Secretary Sonny Perdue about mirroring the approach in Trump’s second term. Rollins said Trump remains committed to farmers and ranchers but reiterated “there may be a short time of uncertainty.”
WSJ opinion: Trump’s trade shift and what it means for the U.S. and the world…In a major move that signals a return to old-school protectionism, President Donald Trump on Wednesday unveiled sweeping new tariffs — dubbed “Liberation Day” tariffs. While branded as reciprocal, the Wall Street Journal editorial board calls them “reciprocal in name only.” The WSJ warns that this aggressive approach may “remake the U.S. economy and the world trading system,” but not necessarily for the better. Here are key takeaways from their commentary:
Economic Uncertainty and Consumer Pain The editorial underscores the unpredictability of global reactions, noting that “if the response is widespread retaliation, the result could be shrinking world trade and slower growth, recession, or worse.” American consumers and businesses are likely to face rising costs—especially in industries like autos, where tariffs could inflate prices by thousands.
“Mr. Trump is making a deliberate decision to transfer wealth from consumers to businesses and workers protected from competition behind high tariff walls.”
U.S. Exports in the Crosshairs A central critique is that Trump’s approach reverses decades of bipartisan trade expansion efforts. Retaliatory tariffs and new trade agreements excluding the U.S. may sideline American exporters.
“Think of Brazil’s soybean bonanza after Mr. Trump’s China tariffs in his first term.”
Lobbyists’ Paradise, Leadership’s Decline The WSJ predicts a surge in lobbying as industries seek exemptions. Despite Trump’s tough talk, “watch that promise vanish” under political pressure. More broadly, the U.S. risks ceding its role as global economic leader:
“The U.S. share of global GDP has been stable at about 25% for decades… That era is now ending.”
China’s Strategic Advantage Ironically, Trump’s anti-China policy may hand Beijing new influence, as allies seek stable trade partners. China’s growing trade ties could reduce cooperation on tech controls and national security.
“Trump’s new tariff onslaught is giving China another opening to use its large market to court American allies.”
Bottom Line The WSJ sees this moment as more than a shift in trade policy — it’s a pivot away from the post-WWII economic order. Trump may be promising a “golden age,” but the Journal cautions it could look more like a costly detour into the past.
The tariffs would translate into a 2.3 percentage point increase to overall inflation this year...according to new estimates from the Yale Budget Lab, or about a $3,800 impact for the average household.
Political reactions. The announcement has drawn mixed reactions:· Supporters argue that the tariffs will bolster American manufacturing and reduce dependence on foreign imports.· Critics, including Democratic lawmakers, view the move as unilateral overreach that risks destabilizing alliances and exacerbating economic inequality.
International response. Countries targeted by Trump’s reciprocal tariffs are preparing countermeasures: · The European Union has hinted at retaliatory tariffs while leaving room for negotiations. France is pushing for the EU to hit U.S. tech companies, a move that would broaden the trade war to the vast services sector. The new tariffs represent “a major blow to the world economy,” Ursula von der Leyen, the president of the European Commission, said in a press statement early on Thursday morning. “The global economy will massively suffer. Uncertainty will spiral and trigger the rise of further protectionism.” The EU sends nearly a fifth of American imports, and European consumers are a huge market for American services. · China criticized the measures as protectionist and threatened its own set of levies. China vowed to “safeguard its own rights and interests.” Its state media described the tariffs as “self-defeating bullying.” · Japan called the new levies “extremely regrettable.” · Smaller nations like Vietnam and Lesotho are expected to face significant economic strain due to steep tariff rates. · The UK and Australia expressed disappointment in the tariffs but have chosen not to retaliate at this point. Prime Minister Keir Starmer of Britain said negotiations toward a trade deal with the U.S. would continue and did not suggest any immediate retaliation. Prime Minister Anthony Albanese of Australia said the United States imposing 10% tariffs on the country had “no basis in logic.” But Australia would not race to retaliate, he said, saying the country would not “join a race to the bottom that leads to higher prices and slower growth.”
· In Mexico and Canada, there was a sense of relief at avoiding new tariffs. “This is good news for the country,” said Luis de la Calle, a top Mexican trade economist. “It allows us to safeguard our access to U.S. markets.” As for Canada, Prime Minister Mark Carney said Trump “has preserved a number of important elements of our relationship, but the fentanyl tariffs still remain in place. We’re going to fight these tariffs with countermeasures.”· The U.S. will respond to any retaliation to make sure the emergency action is not undermined.