The Impact of Trump's Tariff Policy on American Family Farmers: Farmers Facing Shrinking Export Markets and the Risk of Bankruptcy

Family farms in the agricultural heartland of the United States are under pressure due to the tariff policies of President Trump, especially the high tariffs on China that are impacting agricultural exports. Even though the government claims these measures will result in fairer trade, farmers are dealing with shrinking export markets, declining prices, and a rise in bankruptcies. The article examines the impact of these policies on family farms by analyzing farmers' experiences and data.

The Reality of Family Farms: Collapse of the Export Market

In rural Wisconsin, fourth-generation farmer Malia is building a mobile chicken coop while preparing to plant corn and soybeans. These crops largely depend on the export market, especially China. However, since the Trump administration announced on April 2, 2025, the imposition of up to 145% "reciprocal duties" on China and other countries, China's purchase of U.S. agricultural products has sharply decreased.

According to CNBC, China canceled its largest pork order since 2020 at the end of April, forcing the suspension of a 12,000-ton meat export batch. Such actions have directly impacted U.S. farmers who rely on exports. Reports from the South China Morning Post and The Guardian indicate that U.S. exports to China fell by 21% in April 2025, marking the largest drop in nearly two years.

Bankruptcy and the Disappearance of Farms: The Story Behind the Data

The consequences of these trade conflicts are reflected not only in export data but also in farmers' livelihoods. According to Food and Water Watch analysis cited by The Guardian, U.S. farm bankruptcies rose by 24% between 2018 and 2019, hitting a ten-year peak. During this period, retaliatory tariffs resulted in approximately $27 billion in losses for U.S. farmers.

Moreover, the total number of U.S. farms is decreasing at the fastest rate in twenty years, with small family farms being the hardest hit. These farms are often located in areas with high Trump support, such as Iowa, Kansas, and South Dakota. Many farmers say their children are no longer considering inheriting the farm due to high risks and low profits.

Government Subsidies and Farmers' Responses

To mitigate farmers' losses, the Trump administration issued over $28 billion in agricultural subsidies during its first term. These subsidies mainly targeted agricultural products that lost markets due to the trade war, such as soybeans, pork, and dairy products. However, many farmers view these subsidies as a "short-term fix" that fails to address the root problem.

Ben Murray, a researcher at Food and Water Watch, pointed out, "Trump's trade war hurt independent farmers but benefited multinational corporations." These corporations can shift production overseas to avoid high tariffs, while family farms cannot afford such transformation costs.

Hopes and Limitations of New Trade Agreements

In May 2025, the Trump administration announced a new trade agreement with the UK, pledging to open a new $5 billion market for U.S. agricultural products, particularly beef and ethanol. According to reports from the White House and Yahoo Finance, the agreement will significantly expand U.S. agricultural market access in the UK and reduce trade barriers.

U.S. agricultural organizations responded positively. The American Farm Bureau Federation (AFBF) and the Renewable Fuels Association (RFA) both expressed support, viewing it as a crucial step toward creating new opportunities for farmers. However, the UK's National Farmers' Union (NFU) expressed concerns about U.S. ethanol imports, noting potential pressure on local agriculture.

Despite this, many farmers remain cautious about the future. According to NPR, some farmers and small business owners are uneasy about the unpredictability and inconsistency of Trump's policies, fearing they cannot plan production and sales long-term.

The Chain Reaction on Retail and Consumers

The impact of tariff policies extends beyond farms to the consumer end. According to research by Yale University's Budget Lab, Trump's new round of tariffs could raise annual food costs for American households by almost $5,000. Fresh produce prices are expected to rise by over 5%, while everyday items like frozen foods and canned goods will increase by about 3%.

In Ithaca, New York, a supermarket posted a notice explaining a 10% price increase on bananas from Costa Rica due to tariffs. This situation is becoming more common nationwide, with consumers beginning to feel the real cost of trade policies.

Farmers' Voices: Seeking Vitality in Adversity

In Wisconsin, farmer Brian Reisinger and his family have experienced the ups and downs of this trade war. His sister Malia believes the U.S. needs to set boundaries in trade to protect local producers but also acknowledges that exports are crucial for farm survival.

"We can't produce everything ourselves, nor can we sell nothing," she said. "A good trade agreement should have clear benefits for American farmers."

References

• Trump tariffs, trade war to hit farmers in ‘MAGA heartlands’ especially hard (report)
• Trump’s Tariffs Could Cost US Families Nearly $5,000 More in Grocery Bills, Yale’s Economists Warn
• Trump tariffs live updates: Trump team said to eye cutting China tariffs amid talks
• The US trade deal is a bad deal, and it has the potential to get worse
• ‘Surprise’: Chinese exports resilient in April despite US tariffs
• Americans are already seeing Trump's tariffs kick in. They sent in receipts to prove it
• How Ag Organizations Reacted to News of Trade Agreement Between U.S. and UK
• GREAT DEAL FOR AMERICA: President Trump’s “Breakthrough” Trade Deal
• The impact Trump's tariffs are already having on global supply chains and U.S. businesses
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