Trump provides aid to lobster industry to make for lost Chinese tariffs income

US President has been on a verbal war with China for the last few months. That verbal war has affected the diplomatic, trade and monetary ties between the two countries.

Many industries have been hit by this tiff between the two Presidents. One such industry which has had to bear huge losses is the lobster industry of the US.

China is one of the biggest export destinations for lobster. However, the exports have been trapped inthe Atlantic Ocean by US and Canadian fishermen. But Trump's tariffs on Chinese goods resulted in retaliatory tariffs on US lobster.

To make up for the loss of income, US President Donald Trump, on Wednesday, signed a memorandumdirecting the Department of Agriculture to provide US lobster fishermen with financial assistance. The announcement was made by theWhite House trade adviser Peter Navarro.

Trump has asked the agency to provide subsidies to the lobster industry, just like the ones that have been extended to thesoybean and other agricultural growers.

Navarro said Trump is also directing U.S. Trade Representative Robert Lighthizer to report by July 15 on whether China is beginning to comply with $150 million in lobster purchase commitments under the phase one agreement signed by the president earlier this year.

If the report is not positive, Trump has further advised his administration to placeretaliatory tariffs on the Chinese seafood industry.

The decision comes after the issue was raised in a round-table conference stating that China has failed to meet the expected purchase limit, as stated under the US-China trade deal.

(With inputs from agencies)