Trump’s trade wars caused a slumping ag economy. His fix is another bailout | Opinion

President Donald Trump did not learn his lesson from his first administration when his trade war with China created such a financial catastrophe for American farmers that he had to provide them with a $23 billion bailout.

“We will ensure our farmers get the relief they need and very, very quickly — good time to be a farmer, going to make sure of that,” Trump said in May 2019 in announcing a bailout for farmers.

It’s déjà vu. Last Thursday, Trump said he’ll use tariff revenue to help out farmers who are discovering that China is shopping elsewhere for soybeans and other U.S.-grown produce and leaving farmers and ranchers with plenty of product but no takers on the international marketplace.

“We’re going to take some of that tariff money that we made, we’re going to give it to our farmers, who are, for a little while, going to be hurt until the tariffs kick into their benefits,” Trump said from the White House. “So we’re going to make sure that our farmers are in great shape, because we’re taking in a lot of money.”

See a pattern here? Trump starts a trade/tariff war with international markets that results in our commodities finding no international buyers. Then Trump rides in as the supposed savior by offering bailouts to soften the financial impact.

It appears Trump is no better than a firefighter who secretly sets fires just so that he can be the one who comes to the rescue.

Wouldn’t it be best if Trump just negotiated better tariffs with China and other foreign countries so that American farmers can go about selling their produce minus the drama? Better yet, reset to the tariffs that were in place when he took office in January and farmers planted crops that already had foreign buyers.

Ag secretary overlooks tariffs as a problem

His agriculture secretary overlooked the impact of tariffs as a problem facing farmers and ranchers when delivering a state of the agricultural economy last week in Missouri. Agriculture Secretary Brooke Rollins blamed increases since 2020 — ranging from 18% to 73% for seed, fuel/oil, fertilizer and interest payments — as the enemy of agriculture.

Not once did she signal Trump’s tariff wars as a problem.

“President Trump has made it clear: America’s farmers and ranchers will never be left behind,” said Rollins. “The success of our farmers is a national security priority, and at USDA we are looking at every option to ensure the future viability of American agriculture.”

Psst, Rollins: The sooner Trump drops tariffs against China, the better for our farmers.

Trump’s tariff policy is leaving American agriculture behind. Soybean growers in the Midwest remember the $9.4 billion in losses they racked up in the 2018 trade war. This year, they’ve seen China turn to Brazil and other countries for its soybean buys.

California tree nut growers suffered $239 million in losses in 2018. The state exports 70% of its almonds and almost 80% of its pistachios. Those foreign markets are a big deal for Fresno County where the value of almonds ($1 billion) and pistachios ($862 million) contribute to the county’s $8.6 billion ag economy.

In trying to diagnose the problems facing farmers today, Rollins wrongly went back in time.

“The last administration’s policies drove up inflation and ignored the needs of farmers and ranchers while not opening new markets abroad,” said Rollins. “The cost of doing business for farmers and ranchers increased dramatically, and commodity prices slumped. The Trump administration is holding these companies accountable and will investigate why input prices have not come back down.”

Why blame tariffs when you can just cast former President Joe Biden as a villain?

Not a perfect solution

California — the nation’s biggest ag-producing state with crops valued at $61.3 billion — saw tree nut growers lose $239 million in 2018, but got much less in bailout funds.

Bailouts aren’t a perfect solution. Cornell economist Christopher Barrett said bailouts can’t completely replace a farmer’s losses caused by tariffs. He said in April that tariffs will hurt consumers through more expensive produce, growers and processors through retaliation from other countries and farmers as they look for new buyers.

“The government can cover some of the losses through bailout payments,” said Barrett. “But those rarely match up well with farmers’ actual losses, so it will help some people, but somewhat haphazardly.”

Farmers and ranchers deserve a chance to access world markets, not a taxpayer bailout.

This story was originally published September 30, 2025 at 10:34 AM with the headline "Trump’s trade wars caused a slumping ag economy. His fix is another bailout | Opinion."