China Pivots To Brazil, Squeezing U.S. Farmers As Trump Plans Relief Fund

President Trump announced plans last week to use tariff revenue as a financial cushion for struggling American farmers as China shuns U.S. agricultural goods. Beijing’s pivot to Brazilian ag suppliers has left Midwest farmers in the nation’s top ag belts fearing a spiral into financial hardship.

At the White House on Thursday, President Trump told reporters, „We’re going to take some of that tariff money that we’ve made, we’re going to give it to our farmers, who are – for a little while – going to be hurt until it kicks in, the tariffs kick in to their benefit.”

Trump later told reporters that he has not decided on a final version of the plan and would consult with U.S. Agriculture Secretary Brooke Rollins on the matter.

China’s abrupt pivot to Brazil, after decades of purchasing more than half of the U.S.’s soybeans annually, highlights elevated trade tensions this year as both superpowers attempt to find common ground on a new deal.

Financial Times noted, „For decades, more than half of all U.S. soybeans went to China, the world’s biggest buyer. But this year, as trade talks between Washington and Beijing stall, not a single American soybean has headed east, leaving farmers struggling to stay afloat as bins fill and prices sag while China turns to record supplies from Brazil.”

Source: Financial Times

U.S. farmers across the Midwest’s ag belts largely voted for Trump in 2024 and in other previous elections. The problem for the administration is that export markets for some crops are quickly drying up amid this year’s trade war with China and other countries. This has created a potential political vulnerability for the „America First” party ahead of the 2026 midterm elections, prompting the administration to consider using tariff revenue to mitigate the financial impact on U.S. farmers.

Rollins recently announced a $10 billion, four-year commitment from Taiwan to offset some of the losses incurred from China. She called this a „game-changer for our farmers & ranchers. America’s producers are BACK on offense & leading the world again!”

BREAKING TRADE WIN: Taiwan just committed to $10 BILLION in US agriculture buys over the next 4 years, including soybeans, corn, wheat & beef.

That’s a game-changer for our farmers & ranchers. America’s producers are BACK on offense & leading the world again!

— Secretary Brooke Rollins (@SecRollins) September 19, 2025

The rejiggering of global supply chains to align with „America First” policies has meant more government planning and less voluntary action in the marketplace. Perhaps this will change.