The US government has made two big trade decisions. First, it announced a large aid package to help American farmers. Second, it added a new 5% tax on all goods imported from Mexico. These actions show the government is using both financial help and trade taxes as important policy tools.
The help for farmers is worth $12 billion. Most of this money, about $11 billion, will go to farmers who grow major crops like corn and soybeans. The government says the money comes from taxes it collected on other imported goods. Farmers are facing difficult times because crop prices are low and costs for things like fertilizer are high. The Agriculture Secretary said this money is a "critical bridge" to help farmers with this year's harvest and plan for next season. The government says farmers need help because of unfair trade actions by other countries, like China.
At the same time, the US is adding a new tax on Mexican imports. This is not because of a normal trade problem. Instead, the US says Mexico is breaking a water treaty from 1944. The US says Mexico has not shared enough water from rivers that both countries use. This has hurt farmers in Texas. President Trump said Mexico must release a large amount of water by December 31st to avoid more taxes.
These decisions have different effects. The aid helps farmers now, but some experts say it is expensive and fixes problems caused by other trade policies. The new tax on Mexico creates uncertainty. It uses trade rules to solve a water agreement problem. The future is unclear for farmers, who depend on both government help and stable international trade.