Trump's major decision is to provide $12 billion in aid to farmers amid the trade war with China
Trump and Chinese President Xi Jinping reached a preliminary trade agreement in October, which the White House said included resuming US soybean sales to China. Officials said in November that China would buy at least 12 million metric tons of soybeans in the last two months of 2025.
US President Donald Trump on Monday announced a $12 billion aid package for American farmers, a move aimed at helping the sector hit by tariffs and the trade dispute with China.
Trump launched the plan during an event at the White House attended by Treasury Secretary Scott Bessent, Agriculture Secretary Brooke Rollins, several lawmakers and members of the farming community.
He said the funding for this package will come from government revenues from US tariffs. Announcing the financial assistance, he said the relief will provide farmers with the certainty they need to bring this year's harvest to market and prepare for next year's crops, and will help them continue their efforts to lower food prices for American families.
Will be delivered by February 28
Agriculture Secretary Rollins said farmers can apply for the funds in the coming weeks and they will be distributed by February 28, 2026.
According to officials, about $11 billion in government aid has been set aside for the Agriculture Department's Farmer Bridge Assistance Program, which will provide farmers with one-time payments for crops.
While outlining the administration's aid plan, Bessant stressed stability for producers planning ahead. "You have to start funding to plan for next year, when things are much better," he told CBS News on Sunday.
Retaliation for new tariffs
The announcement comes at a time when farmers have lost billions of dollars in soybean revenue this year due to a boycott by China. China halted purchases in May in retaliation for new tariffs imposed by the Trump administration.
According to the Iowa Farm Bureau, China has been the largest buyer of American soybeans, purchasing more than half of US exports over the past five years.
US soybean sales to China
Trump and Chinese President Xi Jinping reached a preliminary trade agreement in October, which the White House said included resuming US soybean sales to China.
Officials said in November that China would buy at least 12 million metric tons of soybeans in the last two months of 2025. However, Chinese imports could still fall below normal levels.
Major losses on maize, soybean and cotton
The trade dispute has exacerbated existing challenges for American farmers, who were already facing rising costs and shrinking profit margins.
Farmers told CBS News that they are facing significant losses on corn, soybeans, and cotton, with crop prices plummeting over the past two years, according to data from the American Farm Bureau Federation.
Bessant said on CBS News that domestic soybean prices have risen 15% since the deal with China. The administration began considering a financial relief package for farmers in October, which sources told CBS News could include more than $10 billion in aid.