Rabat: The Southern California News Group (SCNG) on Sunday published an editorial titled "$12 billion payout to farmers is a tariff-based disaster," saying a bailout announced earlier this month underscored the failure of the Trump administration's trade policies. The editorial, written by the SCNG Editorial Board, opened with a pointed question: "If President Donald Trump's tariffs and trade wars are so great for the American economy, then why does he have to shell out, as he did this month, 12 billion U.S. dollars to farmers adversely affected by tariffs and trade wars?"

According to Namibia Press Agency, the editorial argued that tariffs and the trade wars resulting from them are detrimental to the economy, labeling them as additional taxes on the American consumer. It criticized Trump's approach to tariffs as fundamentally flawed, highlighting that tariffs no longer significantly contribute to federal revenue in today's globalized economy.

The editorial cited Jay Shambaugh of the Brookings Institution, who warned that the trade war initiated by Trump would be disastrous for the U.S. economy. Shambaugh cautioned that such policies would hurt consumers, damage productive firms, slow economic growth, and undermine U.S. relationships globally.

SCNG's editorial depicted the 12 billion U.S. dollar payout to farmers as an inadequate response to issues created by the administration's own trade policies. It expressed concern that the financial aid primarily targeted growers of "row crops" like soybeans, which had previously been sold successfully to trading partners before the onset of the trade war.

Furthermore, the editorial pointed out that the bailout would not assist all sectors within the struggling American agricultural industry. It noted that companies like tractor manufacturer John Deere anticipated significant financial losses due to tariffs, with an estimated impact of 600 million U.S. dollars by 2025.

The Southern California News Group, which comprises 11 daily newspapers, serves the greater Los Angeles area and covers five counties. It is known for its comprehensive coverage of local and national issues.