Trump may use tariff revenue to bail out farmers, agricultural secretary says. They're reeling from challenges caused by the levies to begin with | Fortune

"President Donald Trump is weighing a bailout program for farmers that would use tariff income, according to Agriculture Secretary Brooke Rollins. The U.S. agricultural industry is preparing for a harvest season that will likely be characterized by dwindling export opportunities and more expensive tools and equipment as a result of the administration's aggressive tariff policy. "There may be circumstances under which we will be very seriously looking to and announcing a package soon," Rollins told the Financial Times on Wednesday, adding that using tariff income to finance the package would be "absolutely a potential.""

"The administration's trade policies have already impacted the price of necessary tools for farmers, including a more-than-15% tariff rate on self-propelled machines like tractors and nearly 25% on herbicides and some pesticides, in part because of trade disputes with Canada, according to August data from the North Dakota State University Agricultural Trade Monitor. Agricultural machinery manufacturer John Deere has warned of the adverse impact of tariffs on its own business, including a $600 million hit from the levies in fiscal 2025."

"Retaliatory tariffs from China as a result of the trade war has also hobbled soybean farmers, who previously relied on China for more than 20% of its soybean exports. Chinese tariffs on the crop reached 34%, making U.S.-exported soybeans more expensive to Chinese importers than beans from Brazil. This effectively prices the U.S. out of the Chinese soybean market ahead of the autumn harvest season, according to the American Soybean Association."

President Donald Trump is weighing a bailout program for farmers that could be financed with tariff income. The agricultural sector is heading into a harvest season marked by dwindling export opportunities and higher costs for tools and inputs driven by aggressive tariff policy. Tariffs include more-than-15% on self-propelled machines like tractors and nearly 25% on some herbicides and pesticides. John Deere expects roughly a $600 million hit from the levies in fiscal 2025. Retaliatory Chinese tariffs on soybeans reached 34%, making U.S. beans more expensive than Brazilian supplies and curtailing access to a market that previously absorbed over 20% of U.S. exports.

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