Escalation of the US-China Trade War: Trump's Increased Tariffs Trigger Agricultural Crisis, Promises to Aid Farmers

Taiwan • Business • 04/15 22:50
Escalation of the US-China Trade War: Trump's Increased Tariffs Trigger Agricultural Crisis, Promises to Aid Farmers

In April 2025, the US-China trade war escalated as the Trump administration imposed a 145% tariff on Chinese goods, and China retaliated with a 125% tariff, severely impacting US agricultural exports. The Trump administration urged farmers to stay strong via social media and considered reintroducing agricultural subsidies. Reactions from the agricultural sector and members of Congress were mixed, expressing concerns that the tariffs and potential subsidy cuts could cause long-term harm to agriculture. Soybean and sorghum exports were affected, putting financial pressure on farmers, causing some to waver in their support.

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04/15 22:50

Escalation of the US-China Trade War: Trump's Increased Tariffs Trigger Agricultural Crisis, Promises to Aid Farmers

In April 2025, the US-China trade war escalated as the Trump administration imposed a 145% tariff on Chinese goods, and China retaliated with a 125% tariff, severely impacting US agricultural exports. The Trump administration urged farmers to stay strong via social media and considered reintroducing agricultural subsidies. Reactions from the agricultural sector and members of Congress were mixed, expressing concerns that the tariffs and potential subsidy cuts could cause long-term harm to agriculture. Soybean and sorghum exports were affected, putting financial pressure on farmers, causing some to waver in their support.

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Trump Sparks Tariff War Again, Farmers Hit First

In April 2025, the US-China trade war escalated further. The Trump administration announced tariffs of up to 145% on Chinese goods imported into the US, and China immediately retaliated with 125% tariffs covering American agricultural products, automobiles, and high-tech goods. This tariff war has a direct impact on American agriculture, especially farmers who rely on export markets.

Trump posted on the social platform Truth Social, stating: "Our farmers are great, but because of their greatness, they are always pushed to the front lines in trade negotiations with adversaries like China." He emphasized that this is similar to the situation during his first term when he used $28 billion to subsidize farmers as compensation for China's retaliatory tariffs.

White House Considers Another Bailout, Farmers' Reactions Mixed

White House Press Secretary Karoline Leavitt confirmed at a press conference that the Trump administration is considering relaunching the agricultural subsidy program to alleviate the losses farmers face due to the tariff war. She stated, "The President will ensure our farmers get the support they need to keep feeding the world."

However, farmers have mixed reactions to this promise. According to The Guardian, many farmers say they could face financial collapse without large-scale government relief. The American Farm Bureau noted, "Over 20% of agricultural income comes from exports, and farmers also rely on imported fertilizers and machinery. Tariffs will increase production costs, and retaliatory tariffs will make American agricultural products less competitive in the global market."

Warnings from the Agricultural Sector and Congress Members

Democratic Senators Dick Durbin and Amy Klobuchar from Illinois and Minnesota jointly wrote to the US Trade Representative, expressing grave concerns over Trump's tariff policy. They pointed out that farmers have already made decisions and invested funds for spring planting, and the sudden tariff policy will prevent them from adjusting crop types or market strategies.

The letter stated, "We continue to hear from farmers and agricultural supply chain businesses who are bearing the negative impacts of the global tariffs announced by President Trump. These actions, along with retaliatory measures from China, Canada, and Mexico, further exacerbate the uncertainty in the agricultural economy."

Soybean and Sorghum Exports Hit Hard, Farmers Turn to Drought-Resistant Crops

The US-China tariff war has a particularly significant impact on specific crops. According to Reuters, China was once the largest buyer of US sorghum, accounting for up to 90%. However, after the new round of tariffs, exports from January to February 2025 plummeted from 1.4 million metric tons in the same period last year to 78,316 metric tons, a staggering 95% drop.

Kansas sorghum farmer Dan Atkisson stated that despite the sluggish market, he still plans to increase his planting area by 25%, hoping the trade war will end soon or that the Trump administration will provide sufficient subsidies. USDA data shows that nationwide sorghum planting area is expected to increase by 4% in 2025, reaching the highest level since 2023.

Meanwhile, soybean farmers are in an even more difficult situation. China was once the largest buyer of US soybeans, but the market shrank significantly after the 2018 trade war. CNN reported that 71% of US agricultural losses in 2024 were related to soybeans. Now, Brazil is expanding its soybean exports to China, further squeezing the market space for American farmers.

Federal Agricultural Subsidy Cuts Worsen the Plight

In addition to tariff policies, the Trump administration has recently cut several federal agricultural subsidy programs. According to The Guardian, these cuts are like adding insult to injury for farmers already facing extreme weather and economic pressures. Economist Betty Resnick pointed out, "Without direct support from the USDA or an updated agricultural bill safety net, farmers can hardly withstand the impact of these tariffs."

Farmers' Support Wavers, Some Still Firmly Support Trump

Despite the challenges, Trump still enjoys strong support in agricultural regions. According to an analysis by Investigate Midwest, Trump won 433 out of 444 agriculture-dominated counties in 2024, with an average vote share of 78%. Texas Agriculture Commissioner Sid Miller stated, "Our farmers are ready to make sacrifices for the long haul. Tariffs are just temporary tools, and China will eventually return to the negotiating table."

However, some farmers are beginning to question Trump's policy direction. Iowa farmer Johnson said, "We've already experienced two years of disaster, with falling prices and abnormal weather... Without subsidies, it will be devastating."

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