Trump says tariff revenue will fund relief for US farmers

President Donald Trump said his administration will use funds collected from tariffs to assist beleaguered US farmers, who have thus far been hit hard by his trade policies.

“We’re going to take some of that tariff money that we’ve made, we’re going to give it to our farmers, who are — for a little while — going to be hurt until it kicks in, the tariffs kick in to their benefit,” Trump said Thursday at the White House.

American farming communities, which largely voted for Trump in 2024, have experienced economic pain during his second term, as export markets for crops have dried up in the wake of the president’s trade wars and federal safety-net programs have shrunk. That has created a potential political vulnerability for the president’s fellow Republicans heading into next year’s midterm elections.

GOP lawmakers from key agricultural states have expressed frustration with the president’s trade policy and its impact on US farmers. Senator Chuck Grassley of Iowa criticized a move by Argentina to sell soybeans to China — sidelining American farmers who usually dominate the trade — and urged Trump to secure a deal with Beijing.

“Farmers VERY upset abt Argentina selling soybeans to China right after USA bail out,” Grassley said on social media Thursday referencing the US readying a financial lifeline for Buenos Aires. “Still ZERO USA soybeans sold to China Meanwhile China is still hitting USA w 20% retaliatory tariff NEED CHINA TRADE DEAL NOW farmers need markets 2boost farm economy.”

China — the world’s largest soybean importer — has yet to book a single shipment of the US oilseed this season, fueling anxiety among farmers as this year’s harvest moves ahead. Producers are also grappling with Beijing’s retaliatory tariffs on US goods.

US Agriculture Secretary Brooke Rollins has said that the administration would provide financial assistance to farmers “perhaps in the next couple of weeks.” Speaking Thursday during a conference in Missouri, Rollins said the remaining $2 billion in payments under the Emergency Commodity Assistance Program — which aims to help farmers cope with rising input costs and falling commodity prices — will be released “within the week.”

Roughly $8 billion of the program’s total $10 billion has already been disbursed, according to information on the USDA website. It’s unclear if the next aid package would fall under that program or a different one.

Using tariff revenue for farm aid could prove risky. The president’s sweeping duties imposed using emergency powers have been ruled illegal by lower courts, and if the Supreme Court affirms those decisions, the US government could have to pay back tens of billions of dollars in refunds.

Still, farmers have long been eager for relief. Crop revenues have been under pressure since before the start of Trump’s second term, due to falling commodity prices while rising costs for seeds, fertilizer and equipment have further squeezed profit margins.