US President Donald Trump has announced a $12bn aid package aimed at supporting farmers hurt by his own aggressive tariff policies. Speaking at the White House on Monday, Trump said the funds will come from tariff revenue collected under his sweeping trade agenda.
“What we’re doing is we’re taking a relatively small portion of that, and we’re going to be giving and providing it to the farmers in economic assistance,” he said, adding that “we love our farmers,” a nod to the voting bloc that helped carry him in 2024.
Since taking office, Trump has used emergency powers to impose reciprocal tariffs across much of US trade, triggering friction with partners and a prolonged trade war with China. While tensions have cooled recently, the damage lingers: farmers faced rising input costs and shrinking markets as China shifted towards South American suppliers for key crops like soybeans and sorghum.
Despite strong harvests, many producers are still struggling. A Trump administration official said as much as $11bn of the package will go to the new Farmer Bridge Assistance programme for row crop farmers affected by trade disruptions and higher prices. Where the remaining $1bn will go is yet to be decided.
Economic forecasts suggest deeper trouble ahead. The Food and Agricultural Policy Research Institute projects net farm income could drop by more than $30bn in 2026 as government support falls and crop prices stay weak. Soybean growers are on track for a third straight year of losses in 2025, according to the American Soybean Association, a downturn that predates the tariff war but worsened under it.
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