President Trump rolled out a $12 billion bailout for struggling farmers on Monday as he looks to shore up the finances of some of his most loyal supporters whose financial fortunes have been hurt by his trade war.
The rescue package, which was unveiled at an event with farmers at the White House, comes as Mr. Trump’s trade policies have hurt America’s agriculture sector. While Mr. Trump’s plan to raise tariffs was intended to spur domestic production and open export markets it has actually closed off sales for many U.S. farmers. China — the biggest buyer of American crops such as soybeans — retaliated against Mr. Trump’s tariffs by halting purchases of U.S. farm products this year.
“We love our farmers,” Mr. Trump said at the White House event announcing the payments. “And, as you know, the farmers like me.”
Most of the relief funds will come from the Agriculture Department’s Farmer Bridge Assistance program. According to the Agriculture Department, the money will go to producers of corn, cotton, sorghum, soybeans, rice, wheat and other row crops.
The payments to the farmers will be made by the end of February. The Trump administration will initially distribute $11 billion and is reserving another $1 billion to support growers of fruits and vegetables as needed.
Mr. Trump said that the money was a small portion of the revenue that the United States has been taking in from tariffs. Although he said the tariffs made the payments possible, Mr. Trump’s aggressive use of import levies is the primary reason that American farmers need economic support. The payments are not being funded directly by tariff income.
American farmers, a key voting bloc for Mr. Trump, have been warning of the worst crisis since the 1980s as China turned to Brazil, Argentina and other markets for food products as retaliation for the president’s trade war. High tariffs on foreign goods that farmers need, like levies on metal used for farm buildings and tractors, as well as immigration restrictions that have cut down on the number of farm laborers, have also weighed on American farms.
