Farmers have been hit hard by the trade war, which has cut down on their purchases of seeds and fertilizers and pushed up prices.
Published December 8, 2025
US President Donald Trump announced a $12 billion aid package to help farmers hurt by aggressive tariff policies.
President Trump announced the policy at a White House event on Monday, saying it would be funded from money raised through tariffs.
Recommended stories
list of 3 itemsend of list
“What we’re doing is taking a relatively small portion of that and giving it to farmers as economic aid,” Trump said.
Since taking office, President Trump has used emergency powers to pursue far-reaching tariff policies, including imposing reciprocal tariffs on nearly all U.S. trade and escalating the trade war with China.
Since then, the U.S. and Chinese governments have begun to ease some tensions, but retaliatory measures have made for a difficult year for farmers.
Despite record harvests in the United States, China is increasingly looking to South America for agricultural products, especially soybeans and sorghum. It also faces rising prices for seeds and fertilizers as a ripple effect of the tariffs.
The Trump administration is acutely aware of the impact, given that Trump received enthusiastic support among many farmers during the 2024 election.
President Trump referenced that support Monday, saying, “We love our farmers.”
“And you know, farmers like me…because based on voting propensity, you can call it voting propensity or whatever,” he said.
Ahead of the White House event, Trump administration officials said up to $11 billion in new aid would go to Farmer Bridge Assistance, a new program for row crop farmers hurt by trade disputes and high costs.
Officials said they are still deciding where to allocate the remaining $1 billion.
The University of Missouri Food and Agricultural Policy Institute estimates that lower government payments and weaker crop prices could reduce net farm income by more than $30 billion in 2026.
Meanwhile, soybean farmers are expected to be in the red for the third consecutive year in 2025, according to the U.S. Soybean Association, which has been declining since before President Trump’s tariffs.
The Trump administration is trying to paint a rosier picture, pointing to an agreement between Trump and Chinese President Xi Jinping for Beijing to buy 12 million tons of U.S. soybeans by the end of the year. The Chinese government has also agreed to purchase 25 million tons a year for the next three years.
Since then, China has purchased only a fraction of the total amount promised by 2025, but White House officials said it is on track to meet the goal.
American farmers typically receive billions of dollars in federal subsidies each year.
Overall, farmers will receive a near-record $40 billion in government payments this year through a series of disaster relief funds and economic aid.
