US farmers feel the sting of Trump’s China trade clash
US farmers are emerging as a critical test of Donald Trump’s trade war, with more than 200 agriculture groups urging him to open up new market access to stem a surge in bankruptcies
Farmers are warning Donald Trump that his trade war with China is unsustainable, with more than 200 agriculture groups signing a letter to the US President this week urging him to open new overseas markets for their products as he weighs up a fresh bailout package.
The letter comes as Beijing introduces new restrictions on exports of Chinese rare earths in an attempt to enhance its leverage in looming trade talks with the US and at the APEC leaders’ summit in Gyeongju, South Korea, at the end of the month.
Soybeans, America’s biggest agricultural export commodity, are on the frontline of the trade war between Washington and Beijing after the US President unveiled his regime of reciprocal tariffs on April 2.
Soybeans were the largest single US export to China in terms of value, worth $US12.8bn ($19.5bn) last year, but have since been priced out of the Chinese market, with Beijing imposing retaliatory tariffs of more than 40 per cent on them.
US Department of Agriculture figures show that China made up slightly more than half the total $US24.47bn export value for US soybeans in 2024, with Mr Trump this week flagging an assistance package for farmers feeling the brunt of the trade conflict.
Farmers, who supported Mr Trump in far greater numbers than Kamala Harris, are now harvesting their crop but no longer have access to their biggest customer and have been hit with much higher input costs, including fertiliser and equipment.
The letter addressed to Mr Trump and signed by the nation’s biggest farming organisations warned that economic conditions were contributing to an “increasing number of Chapter 12 bankruptcy filings”.
“For the 12-month period ending June 30, 2025, Chapter 12 bankruptcy filings are up by 56 per cent from the 12-month period ending June 30, 2024,” it said. “This also represents a second year of increased filings, and further increases are expected.
“We need help. We encourage you to continue using your considerable international leverage to secure new export market access for farm products.
“We know that building markets takes time, and while our producers do not want to be in the position of having to ask for more assistance, they do need a bridge to get to improved markets.”
Speaking at a cabinet meeting in Washington on Thursday, local time, Mr Trump – reported to be mulling a $US10bn bailout package for US farmers – said that America imported massive amounts of goods from China and that “maybe we’ll have to stop doing that”.
Mr Trump said he would discuss the treatment of US soybeans when he meets Xi Jinping after previously accusing the Chinese leader of using them as a negotiating tactic in the ongoing trade war.
Agriculture Secretary Brooke Rollins said the US farm economy was enduring a very “uncertain time” but denied this was because of ongoing trade negotiations.
The chief executive of the US Soybean Export Council, Jim Sutter, told The Australian the demand for soy was growing globally as part of a “long-term, macro trend happening with or without China”.
“While this continued trade standoff with China is not where we hoped we’d be at this moment in time, I remain optimistic that these challenges will be resolved and that we’ll see renewed demand from China down the road,” he said.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout