Trump unveils $12 billion aid package for farmers hit by U.S. trade war

American farmers hurt by his trade policies look set to receive financial assistance for next year's crops. ​U.S. President Donald Trump on Monday announced a $12 billion aid package aimed at supporting agriculturalists affected by his trade policies and ongoing tariffs.

Speaking at the White House on Monday, Trump said the funds come from a “small portion of the hundreds of billions of dollars” collected from tariffs, adding that American farmers are “the backbone of our country.”

The aid includes up to $11 billion for a newly designed Farmer Bridge Assistance programme to support row crop farmers hit by trade disputes and rising costs, while the remaining $1 billion will be used for other crops, with specific allocations still being determined.

Farm groups and Republican farm-state lawmakers have pushed for such assistance to support farmers with purchasing seeds, fertliser and other expenses for next year's growing season. They cited losses from record harvests and lost soybean sales to China, which shifted to South American suppliers amid stalled trade negotiations. 

Soybean farmers expect to see their third consecutive year of losses in 2025, according to the American Soybean Association.

Trump also said he has asked China's President Xi Jinping to increase China's recently negotiated soybean purchase agreement.

"I think he's going to do more than he promised to do," Trump said.

The aid package aims to support a loyal voting bloc that has largely stood by Trump despite facing billions in lost sales from his trade war with China.

"This relief will provide much needed certainty to farmers as they get this year's harvest to market and look ahead to next year's crops, and it'll help them continue their efforts to lower food prices for American families," Trump said.

Payments will be calculated based on how many acres farmers have planted, their production costs and other factors, said Richard Fordyce, U.S. Department of Agriculture (USDA) under-secretary for farm production and conservation.

Amy Klobuchar, the top Democrat on the Senate Agriculture Committee, said in a statement that Trump's trade policies have hurt farmers.

"The easiest way to give our farmers more certainty would be for the president to end his tariff taxes," she said.

During his first term, Trump provided approximately $23 billion in assistance to farmers affected by his trade measures.

According to estimates from the Food and Agricultural Policy Research Institute at the University of Missouri, net farm income could drop by more than $30 billion in 2026 due to reduced government payments and lower crop prices. U.S. farmers are set to receive nearly $40 billion in government payments this year, supported by ad-hoc disaster and economic aid.

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