Abstract

The beginning of the trade war between the United States and China was caused by the imposition of United States tariffs on several Chinese products. The imposition of these tariffs led to retaliatory tariffs from China against the United States. China's retaliatory tariffs have an impact on one of the United States' sectors, namely the agricultural sector. The United States agricultural sector is an important sector in the agricultural trade sector in the United States. With the retaliation of tariffs, the agricultural sector experienced a significant decline. In response to this incident, the United States government made a policy to overcome this problem by making a new policy, namely subsidies. This study aims to describe and find out how the implementation of United States agricultural subsidies in the case of the 2018-2019 trade war using qualitative methods and data sources sought using primary and secondary data. To analyze this research, the writer uses neoclassical theory and national interest to find out how the implementation and perspective of the policy are. The results of this study indicate that there are 3 programs implemented by the United States to overcome the trade war, namely MFP, FPDP, ATP. However, these programs reap many pros and cons. The subsidy policy is a policy that endangers the United States economy because it disrupts the market mechanism.

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