US prepares to launch $10 billion bailout package for farmers damaged by trade war

nông dân - Ảnh 1. — A farmer looks at soybeans on his farm in Magnolia, Kentucky - Photo: REUTERS

The Trump administration is preparing a relief package worth at least $10 billion to help American farmers struggling with plunging commodity prices, rising costs and trade tensions with China.

According to CNN on October 5, this is considered one of the biggest efforts of the White House in Mr. Trump's second term to deal with the crisis in the agricultural industry - a sector that plays a key role in domestic politics and food security of the US.

American farmers face double crisis

According to the US Department of Agriculture (USDA), agricultural production costs in 2025 are expected to reach 467.4 billion USD, an increase of 12 billion USD over the previous year.

Meanwhile, plunging commodity prices, labor shortages due to tighter immigration policies and trade retaliation from other countries are pushing many farmers into trouble. Farm bankruptcies in the first half of this year rose to their highest level since 2021.

Agriculture Secretary Brooke Rollins admitted that the US agricultural industry, especially traditional crops such as soybeans, corn, and wheat, is in a "severely challenging" period.

The soybean industry, America's largest export, has become a symbol of the current agricultural plight.

Last year, about half of all U.S. soybean exports went to China. But since May, Beijing has imposed a 20% tariff and virtually stopped buying the commodity as part of a tariff war with Washington, sending exports to zero.

The situation has worsened as China has increased its soybean imports from South America, especially Argentina and Brazil.

While the Trump administration has just pledged a $20 billion bailout package for Argentina’s central bank to stabilize the country’s financial markets, China has quickly bought at least 10 shipments of soybeans from Argentina and signed an agreement to increase agricultural cooperation with Brazil. This has left American farmers “left out” during the harvest season, despite productivity being considered quite high in many places.

nông dân - Ảnh 2. — A soybean field in Illinois is being sown - Photo: AFP

White House prepares relief package of at least $10 billion

Faced with growing pressure from the agricultural sector, the Trump administration has in recent weeks been accelerating interagency meetings between the Department of Agriculture and the Department of the Treasury to finalize a support plan.

According to White House officials, the two main options under consideration include: using a portion of the revenue from import tariffs to transfer directly to farmers, or drawing money from the Department of Agriculture's Emergency Commodity Assistance Fund (ECAP) - a fund that was used to spend $10 billion in support for farmers by 2024.

The White House is also considering combining both options to ensure the fastest disbursement speed. The total value of the relief package is expected to range from 10 to 14 billion USD, depending on actual needs and tax revenue.

Mr. Trump affirmed on social media: "We make a lot of money from tariffs. I will spend a small portion of that money to help farmers. I will never let American farmers down!"

The Washington administration is also under pressure from farmers' associations, including the American Soybean Association, to quickly reach a trade agreement with China - the world's largest market.

"The government needs to complete negotiations with Beijing soon. China is still our number one customer," association president Caleb Ragland emphasized.

Mr Trump is expected to make the soybean issue a focus of his face-to-face meeting with President Xi Jinping in South Korea next month, while Secretary Rollins is said to be pressing the White House and Treasury Department to act quickly.

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Source: https://tuoitre.vn/my-chuan-bi-tung-goi-cuu-tro-10-ti-usd-cho-nong-dan-thiet-hai-vi-thuong-chien-20251006095854283.htm