US-China Trade Tensions: Some US farmers show faith in Trump bailout plan

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03:08

US President Donald Trump recently announced a multi-billion dollar bailout plan for farmers to help them weather the storm, as the trade war between China and the US deepens. But will it be enough? CGTN's Toby Muse reports.

Rainy days down on the farm. Pork farmers are struggling with low prices. And they worry the trade war with China could push the prices lower still.

That's one reason President Donald Trump recently announced a 12 billion dollar emergency aid bailout for U.S. farmers. It's been well-received here.

STEVE BAKER OWNER, BAKER FARM "Maybe that will help them over the hump or something until better days ahead."

Baker's farm produces a variety of pork products. His family has been farming this land for 250 years. His focus is the local market- his facility is too small to export. But he's feeling the effect of the trade war between the U.S. and China.

If exporters can't sell their U.S. pork to China, they'll have to sell it back home, pushing prices down, hurting his bottom line.

STEVE BAKER OWNER, BAKER FARM "And everything is economics 101 supply and demand. It's got to be moved out or else it's going to be some more price drops down the road."

It's a sign of the indirect effect a trade war can have, hitting even those not exporting to China.

TOBY MUSE SHENANDOAH VALLEY, VIRGINIA "Farmers feel trapped, in limbo, caught in a trade conflict between Beijing and Washington. And as they look ahead, all they see is more uncertainty."

U.S. Agriculture Secretary Sonny Perdue told Reuters that Trump's plan would include around eight billion dollars in direct cash relief to farmers hit by Chinese tariffs. It's intended only for the 2018 crop.

The farmers can apply for help at the beginning of September, with money going out in October. Perdue conceded the plan wouldn't cover all the losses.

Some in the Republican party, which in the past has traditionally championed free trade, have leveled criticism against the president.

One senator said the approach is becoming more like a Soviet-style economy.

Others have wondered whether U.S. taxpayers will need to bail out other industries involved in the trade war.

Back here on the farm in the Shenandoah Valley, Baker still supports the president. Here, Trump won 70% of the vote in 2016.

But if this trade war isn't resolved soon, how long will the farmers be able to hold out? Toby Muse, CGTN, Shenandoah Valley, Virginia.