Minneapolis Review

Senators Amy Klobuchar and Elizabeth Warren, along with 12 other Senate colleagues, have urged President Trump to stop a planned $20 billion bailout to Argentina. The senators argue that this financial assistance would harm American farmers, especially after Argentina suspended export taxes on soybeans and other agricultural commodities.

In a letter addressed to the president, the senators stated: “We write with deep concern regarding your plan to send a $20 billion bailout, funded by American taxpayers, to Argentina just days after the country took steps to undermine American farmers. Last week, Argentina announced its plan to suspend export taxes on soybeans, effectively sidelining American soybean farmers in the international market.”

They continued: “Despite Argentina’s decision, you are still reportedly moving forward with the bailout for the country. American soybean farmers – who are already reeling from your sweeping tariffs – deserve better.”

The group of signatories includes Senators Chuck Schumer, Tammy Baldwin, Cory Booker, Chris Coons, Tammy Duckworth, Dick Durbin, Tim Kaine, Jack Reed, Bernie Sanders, Elissa Slotkin, Tina Smith and Chris Van Hollen.

The letter outlines challenges facing U.S. farmers as a result of recent trade policies. The senators note that tariffs have increased costs for farm inputs such as fertilizer and equipment while retaliatory tariffs have made U.S. products less competitive abroad. They point out that about 20 percent of U.S. farm production is exported internationally and that current conditions have led to falling commodity prices and increased financial strain among farmers.

Soybean producers are identified as being particularly affected because China has not purchased any U.S. soybeans since May and overall purchases through July were down 51 percent compared to last year.

According to the letter: “Immediately following your Administration’s announcement regarding potential U.S. financial support for Argentina, Argentina suspended export taxes on soybeans, corn, wheat, and other agricultural commodities.” The senators claim this policy change has made Argentine products more competitive globally and cite reports that Chinese buyers recently purchased up to 40 cargoes of soybeans from Argentina in one week.

The senators question why taxpayer dollars should be used in this manner: “It is unclear why you are choosing to use taxpayer dollars to bolster the reelection campaign of a foreign president while they take steps to undermine U.S. farmers.” They also quote the American Soybean Association: “U.S. soybean prices are falling; harvest is underway; and farmers read headlines not about securing a trade agreement with China but that the U.S. government is extending $20 billion in economic support to Argentina.”

They further criticize plans for additional aid packages for American farmers funded by tariff revenues rather than changes in trade policy or new agreements with China.

The letter concludes: “We call on you and your Administration to immediately halt any plans to provide financial assistance to Argentina. Instead of subsidizing a foreign country... you should prioritize lowering costs for American families and strengthening the nation’s agricultural competitiveness.”