US President Donald Trump has unveiled a $12 billion economic assistance package aimed at supporting American farmers, financed through tariff revenues collected from trade partners.
Speaking at a White House roundtable with farmers, lawmakers, and cabinet officials, Trump described the measure as vital for stabilising the US agricultural sector amid low commodity prices and inflation inherited from previous administrations.
“Farmers are an indispensable national asset, part of the backbone of America,” he said, emphasising that tariffs would be central to protecting domestic producers.
India became a focal point during discussions on rice imports, which many Southern growers claim have severely impacted local production.
Meryl Kennedy, CEO of Kennedy Rice Mill, told Trump that countries such as India, Thailand, and China were flooding the US and Puerto Rico markets with subsidised rice, undermining domestic producers.
Trump responded by urging immediate tariff action.
“All right, and we’ll take care of it. That’s great. It’s so easy. Tariffs, again, solve the problem in two minutes,” he said, directing Treasury Secretary Scott Bessent to review potential measures.
Tariffs Central to Broader Trade Strategy
The President also highlighted challenges facing other crops, including soybeans, noting recent discussions with Chinese President Xi Jinping on increased purchases.
Under the Busan framework, China has committed to buying at least 12 million metric tons of US soybeans this season, with a minimum of 25 million tons annually for the next three years. Bessent described the $11–12 billion farm package as a ‘critical liquidity bridge’ for the sector.
Several farmers urged faster intervention, while Trump reiterated the importance of tariff authority, currently under Supreme Court review, in countering unfair trade practices.
Iowa producer Cordt Holub thanked the administration for the ‘bridge payment’ and highlighted domestic policies like E15 as potential market boosters.
National Economic Council Director Kevin Hassett painted a bleak picture of the rural economy under the previous administration, noting the closure of 150,000 farms and rising interest expenses, framing the new aid package as a necessary corrective measure.
The renewed focus on tariffs signals potential challenges for Indian and other Asian agricultural exporters. India has been a key supplier of rice, basmati, spices, and marine products, while importing US almonds, cotton, and pulses.
Disputes over subsidies and market access have periodically strained bilateral trade relations, and Trump’s actions are expected to keep these issues in the spotlight in the coming months.
Also Read: India Will Buy Energy Where It Benefits Most, Says Dmitry Peskov After Putin’s Visit
To read more such news, download Bharat Express news apps
