Daijiworld Media Network - Los Angeles

Los Angeles, Dec 29: The Southern California News Group (SCNG) has strongly criticised the Trump administration’s trade strategy, calling a recently announced $12 billion bailout for farmers clear evidence of the shortcomings of tariff-driven policies.

In an editorial titled “$12 billion payout to farmers is a tariff-based disaster,” the SCNG Editorial Board questioned the logic behind the administration’s approach. It asked why such a large financial rescue was necessary if tariffs and trade wars were truly beneficial to the US economy, as claimed by President Donald Trump.

The editorial argued that tariffs function as indirect taxes on American consumers rather than on foreign countries, adding that trade wars historically harm all economies involved. It described the administration’s tariff calculations as deeply misguided and said they reflected an outdated understanding of global trade, where tariffs no longer serve as a major source of government revenue.

Citing economist Jay Shambaugh of the Brookings Institution, the piece warned that trade wars damage consumers, weaken highly productive US companies, slow economic growth, and strain international relationships. According to the editorial, these effects contradict the administration’s stated economic goals.

The opinion article also portrayed the $12 billion payout as an attempt to mask problems created by the government’s own policies. It criticised the decision to funnel much of the aid to producers of “row crops” such as soybeans, noting that many of these products had previously enjoyed stable access to international markets before the trade disputes began.

The editorial further argued that the bailout would not adequately support all segments of the struggling agricultural sector. As an example, it cited tractor manufacturer John Deere, which has estimated that tariffs could cost the company $600 million in 2025.

The Southern California News Group is a major media organisation comprising 11 daily newspapers across five counties in the greater Los Angeles area, and its editorial reflects growing media scrutiny of the economic consequences of US trade policies.