Trump suggests farmer bailout coming from tariff money
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Trump speaks at a 2023 campaign event. Photo: Scott Olson/Getty Images
President Trump on Thursday indicated farmers could soon get a bailout funded by tariffs, one that could echo similar relief he provided in his first term.
Why it matters: American farmers are being walloped by the trade war, especially soybean growers, who've seen their largest export market — China— disappear.
What they're saying: "We're gonna take some of that tariff money that we've made, we're gonna give it to our farmers who for a little while are going to be hurt until it kicks in, the tariffs kick in to their benefit," Trump said in Oval Office remarks.
- "So we're going to make sure that our farmers are in great shape because we're taking in a lot of money."
Driving the news: The trade war's impact on farmers is back in the headlines this week after the administration offered an economic bailout to the government of Argentina.
- The Argentine government promptly dropped a key export tax, making their commodities substantially cheaper and prompting China to book huge cargoes of Argentinian soybeans.
- That further displaced American farmers, to the benefit of both their Argentine peers and Chinese buyers.
- "The frustration is overwhelming," American Soybean Association president Caleb Ragland said Wednesday.
The intrigue: The Argentina situation is quickly becoming a political headache for Trump, who has committed publicly to supporting an ally.
- "Farmers VERY upset abt Argentina selling soybeans to China right after USA bail out Still ZERO USA soybeans sold to China," Sen. Chuck Grassley (R-Iowa) wrote Thursday on X.
- "Meanwhile China is still hitting USA w 20% retaliatory tariff NEED CHINA TRADE DEAL NOW farmers need markets 2boost farm economy."
- Chinese officials reportedly indicated Thursday any soybean purchases would be contingent on the U.S. dropping tariffs.
Zoom in: Farmers quickly welcomed Thursday's news.
- "If Trump is gonna use these tariffs as a weapon… I'm not saying it's right or wrong… to a farmer it's gonna seem fair if he's being used as an international policy tool that he get compensated for it," Rick Foust, a soybean and wheat farmer in north central Kansas, tells Axios.
- "Chances are it's gonna cost (farmers) $10 and they'll get $5 back."
Flashback: In the first Trump administration, the government provided tens of billions of dollars in aid to farmers, mostly for trade losses.
- Those bailouts, collectively, ended up being so large that they almost equaled the tariff revenue generated.
What to watch: How soon any bailout happens, particularly given the complication of a looming government shutdown.
Marc Caputo contributed.
Editor's note: This story has been updated with comments by Sen. Grassley.
