Trump Admin Mulls Farmer Bailout After China’s Retaliatory Tariffs Threaten Exports

The Trump administration is exploring options to shield American farmers from deepening fallout as its trade conflict with China intensifies, including a possible revival of bailout programs once used during earlier skirmishes with Beijing.

According to Agriculture Secretary Brooke Rollins, officials are “looking at that again,” referencing a $28 billion aid package deployed during President Trump’s first term through the Commodity Credit Corporation (CCC), a government-owned entity designed to support farm incomes and prices.

“Obviously everything is on the table, but we’re in such a period of uncertainty in terms of what this looks like,” Rollins told Bloomberg Wednesday at the White House, adding that no final decisions had been made, emphasizing the administration’s hope that aid wouldn’t be necessary.

“The goal is we won’t need to do it at all,” Rollins said. “That these changes and the realignment of the economy will result in an unprecedented air of prosperity for all Americans, but especially for our farmers and our ranchers.”

The remarks come as U.S.-China trade tensions escalate at a pace that has rattled global markets and amplified fears of an economic slowdown. After President Trump hiked duties on Chinese imports to 104%, Beijing responded by announcing sweeping tariffs that would bring levies on all American goods to 84%.

The retaliatory actions are hitting American agriculture particularly hard, as foreign buyers pull back and alternative suppliers – most notably Brazil – seize market share in global staples including corn and wheat. Many U.S. farmers, already burdened by high input costs and interest rates, now face diminishing export opportunities amid rising global competition.

Meanwhile, proposed cuts to domestic nutrition assistance programs could reduce government food buying, adding another layer of stress for farmers.That said, the Trump White House is banking on its political alliance with rural America to hold firm. Farmers and ranchers remain a crucial electoral bloc for the president, and discussions of renewed aid suggest a growing recognition of the political and economic risk the trade war poses to that support.

Rollins has signaled stepped-up diplomatic engagement as part of a broader effort to blunt the impact of tariffs – recently announcing travel plans to Vietnam, the UK, and Japan, countries that could become strategic partners in alternative trade agreements aimed at stabilizing export markets for U.S. goods.

At the same time, the White House is considering additional support for exporters outside the agriculture sector. One possibility under discussion is a tax credit for companies affected by retaliatory tariffs, though no specifics have been released.

The administration’s trade posture has spurred mixed reactions from industry leaders and lawmakers, with some backing the hardline stance as a necessary step to counter China’s economic practices, while others warn the costs are accumulating too quickly for American businesses and workers to bear.

For now, the prospect of a second large-scale farm bailout remains uncertain. But with markets volatile and planting season underway, many farmers are watching closely—and bracing for more turbulence.