Trump tariff woes: US President to announce $12 bn relief package for farmers

The Trump administration is set to unveil long-awaited financial aid for farmers, according to a White House official. The relief package will include $12 billion in assistance to an important support base for the President, which was negatively impacted by low crop prices and the tariff policies of Trump. Of the $12 billion, nearly $11 billion will go in one-time payments to crop farmers under the Department of Agriculture's newly created Farmer Bridge Assistance program.

The remaining part of the package is reserved for crops not covered under the FBA program, as per the official, as reported by Bloomberg.

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The package follows rising frustration among the farmers on reduced demands from China after Beijing decided to clamp down this year in response to Trump's escalating tariffs.

President Donald Trump plans to unveil the package at around 2 p.m. in Washington during an event with corn, cotton, sorghum, soybean, rice, cattle, wheat, and potato growers, alongside Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins, according to the official.

The move follows similar precedent during the first term when the US and China had heightened tensions over tariffs, prompting President Trump to hand out a $28 billion to farmers in 2018 and 2019 to compensate for losses. While the aid provided instant relief to farmers, it had long-term repercussions for the United States, with China increasing its dependence on Brazil for sourcing soybeans.

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Farmers make a key voter base for the US president. In the 2024 polls farming community overwhelmingly supported Trump. However, they are now facing burnout of their tariff policies as export markets for the US producers have been shrinking with China halting its Soybean purchases earlier this year.