It is a clear signal US President Donald Trump is determined to stick with tariffs as his weapon of choice in the conflict. "Both the U.S. and the European Union drop all Tariffs, Barriers and Subsidies!" he wrote.
Mr Trump, speaking at an event in Kansas City on Tuesday, reaffirmed his support for tariffs and pledged that "farmers will be the biggest beneficiary".
USDA officials told reporters they were still working to set up the programs, which they expect to be ready by early September. The Trump administration justifies the move on the grounds of national security and a growing trade deficit-arguments those countries dismiss as farcical.
With congressional elections coming soon, the government action underscored administration concern about damage to USA farmers from Trump's trade policies and the potential for losing House and Senate seats in the Midwest and elsewhere in November. He writes: "Negotiations are going really well, be cool".
With congressional elections coming soon, the government action underscored administration concern about damage to US farmers from Trump's trade tariffs and the potential for losing House and Senate seats in the Midwest and elsewhere. The end result will be worth it!'
Flags for U.S. President Donald Trump's 'Keep America Great!' 2020 re-election campaign are seen at Jiahao flag factory in Fuyang, Anhui province, China July 24, 2018. "ASA continues to call for a longer-term strategy to alleviate mounting soybean surpluses and continued low prices, including a plan to remove the harmful tariffs".
The measures are a response to an estimated $11 billion in "trade damage from unjustified retaliation", the agency said.
The nonprofit group Farmers for Free Trade said farmers "need contracts, not compensation, so they can create stability and plan for the future".
Senior officials at the Department of Agriculture described the aid as temporary relief for farmers impacted by retaliatory tariffs while USA trade representative negotiate long-term deals.
This will aid producers of soy, sorghum, corn, wheat, pork, dairy, fruit, rice and nuts, all products hit by tariffs imposed in response to United States action.
Rules for the programs have not been fully developed, and an exact date for rollout has not been determined, though Ibach said officials are targeting Labor Day.
American Farm Bureau Federation President Zippy Duvall welcomed the aid, saying it "should help many of our farmers and ranchers weather the rough road ahead and assist in their dealings with their financial institutions". Lost $817 Billion on Trade past year.
"We need to get trade agreements in place". Brad Karmen, the USDA's assistant deputy administrator for farm programs, noted that the wheat harvest is already in, so wheat farmers could get payments sooner than other growers.
Citing the European Union official, the Journal said the USA and European Union delegations were still working on language in a joint statement that would address the contentious issue of tariffs on automobiles.
Sen. Bob Corker, R-Tenn., said the administration was putting farmers on welfare.
"There is a tendency for a little bit of Trump piling on", he said.