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Trump wants to protect farmers from Chinese trade retaliation. That may create a bigger problem

  • President Donald Trump, in protecting U.S. farmers from tariffs by China, may end up inviting more economies into the trade spat, experts said Friday.
  • If Trump administration chooses to subsidize American farmers further, other agricultural exporters could retaliate with subsidies and tariffs of their own, the experts explained.
  • However the U.S. protects its farmers is unlikely to be effective because China can always impose counter-measures, said Rajiv Biswas, Asia Pacific chief economist at IHS Markit.

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