Argentina bailout fuels Senate GOP angst over soybeans
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U.S. Trade Representative Jamieson Greer during an Economic Club of New York luncheon on Sept. 30. Photographer: Victor J. Blue/Bloomberg via Getty Images
Key Senate Republicans pressed U.S. trade representative Jamieson Greer about struggling soybean farmers as President Trump moves forward with a bailout for Argentina.
Why it matters: Trump's now-$40-billion bailout for Argentina is exacerbating GOP trade war fears.
- China has stopped buying U.S. soybeans and is instead purchasing massive quantities from Argentina.It's yet another sign of tension between farm-state Republicans and a president who believes in the power of tariffs — and the prowess of his negotiating skills.
- "China is retaliating to keep their trade advantage with us," Sen. Jon Husted (R-Ohio) told Axios. "And we need to win."
- "And we encouraged the USTR to be a tough negotiator in these things — on behalf of American farmers and American manufacturers and everybody that's being cheated in the process," he continued.
Driving the news: Trump announced a $20 billion bailout for Argentina this week, which Treasury Secretary Scott Bessent upped to $40 billion on Wednesday.
- Senators from big soybean producing states — including Husted, Chuck Grassley (R-Iowa), and Joni Ernst (R-Iowa) — had tough questions for Greer during a lunch on Wednesday, multiple sources in the room told Axios.
- Greer assured senators he is working on the issue, senators said.
Zoom in: "I know [Greer is] working at every opportunity he has, which is daily, to be able to continue to push so that we can get some markets here for our beans," Sen. Deb Fischer (R-Neb.) told Axios.
- "They're working on it right now," Sen. Lindsey Graham (R-S.C.) said.
What they're saying: "I am against bailing out any countries," Sen. Rand Paul (R-Ky.) told reporters on Wednesday, adding "if we had an extra $20 billion laying around, we should put it towards our own debt."
- Many GOP senators refused to weigh in directly on the deal, saying they need more details or instead only emphasizing the importance of opening trade markets for American farmers.
- "China's buying all their products from those countries now," Majority Leader John Thune (R-S.D.) said Tuesday, "so it's a global battle, and we need to find more markets and create more demand for American agricultural products."
- "I made very clear, we've got to get an agreement with China so we don't have that problem," Sen. Chuck Grassley (R-Iowa) told Axios on Tuesday. He posted last month, "Why would USA help bail out Argentina while they take American soybean producers' biggest market???"
Sen. Kevin Cramer (R-N.D.) told Punchbowl News that the bailout seems to go against Trump's signature "America First" ethos. Cramer argued "the brand gets damaged a little."
The other side: Some Republicans offered tepid, general support for the bailout.
- Sen. Mike Rounds (R-S.D.) told Axios he "won't object to someone trying to help, in terms of foreign policy, a country that we believe could be pivotal in terms of that region."
- Graham acknowledged that farmers are upset given how much soybeans China has bought from Argentina, but told Axios, "the president's got a very good relationship with Argentina. They've been very helpful, and so I'll leave it at his discretion to do these things."
