US President Donald Trump announced a $12 billion aid package on Monday to support US farmers affected by the trade war sparked by his administration.
Speaking at a roundtable at the White House, Trump said the funds would come from a portion of the revenue generated by tariffs, aimed at providing farmers with economic relief.
Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins were also present at the event.
Farmers, a key demographic in Trump’s political base, have been hit hard by his protectionist trade policies, with China significantly reducing its purchase of US soybeans, as part of its retaliation against US tariffs.
Trump's plan is aimed at stabilising farmers’ financial position in the interim until new trade agreements can open additional markets, according to White House Deputy Spokesperson Anna Kelly.
Of the $12 billion, $11 billion will be distributed in a single payment to crop farmers. This funding is also intended to help with next year’s planting costs.
Agriculture Secretary Rollins used the announcement to reveal the lifting of environmental restrictions on the agricultural equipment industry. She claimed these regulations had unnecessarily increased manufacturing costs and limited equipment usability.
The government expects manufacturers to lower prices in return for this regulatory rollback, Rollins said.
Trump expressed optimism with regard to the future of US agriculture, citing significant purchases of US soybeans by China, which he said totalled $40 billion. However, analysts have noted that China has only partially fulfilled its commitment to buy millions of tonnes of soybeans under ongoing trade negotiations.
China’s purchases are part of efforts to ease economic tensions between the world’s two largest economies, but Beijing may still shift some imports to South America, experts suggest.
Japan has also committed to buying US$8 billion in agricultural goods from the US, including rice and soybeans, Trump highlighted.
The US president reiterated his promise to assist the farm sector, which has suffered not only from trade tensions with China but also from tough competition from countries like Argentina and Brazil.
US farmers face rising input costs and stagnant or falling product prices. The increased production costs are due in part to tariffs imposed by Trump’s administration, affecting goods such as fertilisers, timber, vehicles, and spare parts.
Farmers can apply for the aid until the end of the year, with payments expected by late February, Rollins confirmed.
