WASHINGTON (RFD-TV) — President Donald Trump announced Thursday that surplus funds from the reciprocal trade tariffs will be given to farmers as they wait for trade policies to deliver long-term benefits, according to a report from Reuters.
President Trump is also promising farmers that tariffs will make them a “fortune,” noting that growers may feel “hurt” before the tariffs “kick in to their benefit.”
“So, what we’re going to be doing is we’re going to be taking some money from all the tariff money that we’ve taken, or we’re going to distribute it to our farmers until the tariffs kick in to their benefit, which ultimately, the farmers are going to be making a fortune. But it’s a process for it to kick in,” President Trump said.
Speaking about his administration’s tariff strategy, Trump acknowledged that producers could face financial strain in the short term but promised stopgap support. He outlined how his administration plans to make them whole, until his trade policy begins to work in the ag industry’s favor.
His remarks come as the farm economy continues to battle low commodity prices and global trade frictions.
Watch President Trump’s Full Remarks:
According to analyst Garrett Toay with Ag Trader Talk, timing and trade negotiations will play a significant role in determining how the aid affects the farm economy this harvest.
“The language coming out of China is, is, you know, we’re willing to buy some U.S. soybeans if some tariffs are removed,” Toay explained. “So, you have a double-edged sword here, where President Trump has dug in on the tariffs because they were a revenue source. But, you know, China wants him gone, you know, and, and closer to free trade, we saw what free trade doesn’t do for Argentina. Remove all barriers, remove the export tax, and a ton of products will move. I think that’s kind of the opportunity that we have here because the producers are looking for a buyer here at harvest if they’re going to move grains. “
Ag trade promotion funding in the “One, Big, Beautiful Bill” does not kick in until next year. Agriculture Secretary Brooke Rollins confirmed the administration is weighing an aid program modeled after earlier relief packages designed to offset losses from trade disputes.
“Years of [President Joe] Biden’s broken promises, from failing to enforce the Phase 1 agreement to letting inflation run wild while foreign governments use our farmers as pawns, have devastated American agriculture,” said House Ag Committee Chairman, Sen. Glen “GT” Thompson in a statement Thursday. “President Trump is right to support them and step in to provide a bridge to the enhanced farm safety net policies in H.R. 1, which will kick in next year. I’m committed to working with the Trump Administration to support farmers and rural America during critical economic times.”
Officials say the plan would ensure farmers have enough stability to bridge the gap until the administration’s tariff policies generate new market opportunities.
Rollins also announced Thursday that, beginning next week, she will repurpose $285 million from Biden-era funding to kickstart the “America First Trade Promotion Program.”
