However, if the president does move forward with rejoining TPP, business groups and many Republican lawmakers would be sure to applaud the move.
The TPP is becoming one of the White House’s few remaining options as Trump searches for ways to exert pressure on China to back down from its threat of new tariffs on U.S. exports
According to the New York Times, “Mr. Trump’s decision to reconsider the deal comes as the White House tries to find ways to protect the agriculture sector, which could be badly damaged by the president’s trade approach. The risk of an escalating trade war with China has panicked American farmers and ranchers, who send many of their products abroad. China has responded to Mr. Trump’s threat of tariffs on as much as $150 billion worth of Chinese goods by placing its own tariffs on American pork, and threatening taxes on soybeans, sorghum, corn and beef.”
Let’s take a look at how the top 3 Agricultural ETFs are trading as of 5:30 p.m. Eastern time according to Yahoo Finance.
3 Agricultural ETFs Respond to Trump
- DB Agriculture Short ETN (ADZ) down 4.02%
- PowerShares DB Agriculture ETF (DBA) up 0.37%
- iPath Bloomberg Grains Total Return ETN (JJG) up 0.42%
America’s farmers helped send Trump to the White House and this backlash would not be appreciated. The Trump administration says it has ordered the Agriculture Department to create a program to help farmers hurt by trade.
Trade advisers say the department could use a program known as the Commodity Credit Corporation to purchase potentially billions of dollars of crops from American farmers. But it would be time-consuming and costly.
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