By WSJ City 

President Trump rolled out a $16bn plan to help farmers hit by the trade conflict with China and suggested on Thursday that Huawei could potentially be a bargaining chip in settling the dispute.

The developments came as financial markets fell again amid uncertainty over the fate of the trade talks, with the Dow Jones Industrial Average dropping 286.14 points, or 1.1%.

KEY POINTS

--- At a White House event with farmers, Trump said a deal with China was a "good possibility" but gave no details.

--- He said the US campaign against Huawei could be up for negotiation.

--- But he also called the telecom giant a "very dangerous" threat to national security.

--- The $16bn farm plan largely consists of direct payments to US farmers hit hard by Chinese tariffs on crops.

--- The payments echo a similar programme last year that was funded at $12bn.

--- The move comes as soybeans, corn and sorghum, fell last week to their lowest level in more than 10 years.

Why This Matters

Trump's statement that Huawei could be a factor in a trade deal echoed similar comments made last year when he indicated that US sanctions against telecom giant ZTE could be eased as part of negotiations with China.

But with the farm-aid programme, which would send cash payments beginning this summer, the White House is preparing for a potentially long battle. Some farmers have praised the aid. But "farmers themselves will tell you they'd rather have trade than aid," said Agriculture Secretary Sonny Perdue.

A fuller story is available on WSJ.com

WSJ City: The news, the key facts and why it matters. Be deeply informed in less than five minutes. You can find more concise stories like this on the WSJ City app. Download now from the App Store or Google Play, or sign up to newsletters here http://www.wsj.com/newsletters?sub=356&mod=djemwsjcity

(END) Dow Jones Newswires

May 24, 2019 09:48 ET (13:48 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.