Image Source: Pixabay
 

Tariffs backfired on US agricultural exports.
 

Farmer Bailout Coming Up
 

Farmers are harvesting one of the largest crops in history, while China holds off on buying U.S. soybeans

The Wall Street Journal reports Trump Explores Bailout of at Least $10 Billion for U.S. Farmers

President Trump is considering providing $10 billion or more in aid to U.S. farmers as the agriculture sector warns of economic fallout from his far-reaching tariffs, according to people familiar with the discussions.

The president and his team are weighing using tariff revenue to fund much of the aid, the people said, adding that distribution of the money could start in the coming months. A senior administration official said the discussions have centered on $10 billion to $14 billion in aid. The aid likely would go toward helping soybean producers, as well as other parts of the farm economy.

American farmers are harvesting one of the largest crops in history, fueling a glut that is driving down prices for corn and soybeans. Rising costs for equipment, fertilizer and other materials are also crimping profits. U.S. soybean farmers are estimated to lose roughly $100 an acre this year, according to federal data.

From January through August of this year, U.S. soybean exports to China totaled just over 200 million bushels, down from almost one billion bushels during the same period in 2024, according to the American Farm Bureau Federation. Meanwhile, Brazil has shipped more than two billion bushels of soybeans to China during that time.

When Trump placed tariffs on China during his first term, Chinese imports of U.S. soybeans plummeted, devastating farmers’ balance sheets. The the U.S. Agriculture Department has estimated that soybean growers accounted for more than 70% of the financial losses incurred by farmers during Trump’s first trade war.

The government sent about $23 billion to farmers to compensate. While soybean exports recovered in the following years, China has been squeezing American farmers out and has spent heavily to improve the agriculture supply chain in South American countries such as Brazil to fill the gap.

Gee Go Figure
 

Increase tariffs on fertilizer, on equipment, and on parts, then claim tariffs are paid by exporters.

Then do another bailout.

But the bailout is only for farmers, not small manufacturers clobbered by the same insanity.

Another Irony
 

Trump does not want China to produce more goods than China can use.

He complains about dumping.

Q: What is the US doing with soybeans?
A: Dumping, by Trump’s own definition, then selectively bailing out a favored group.

Don’t Worry, It’s Only $14 Billion
 

It’s only $14 billion because Trump only cares about farmers, none of the other businesses Trump is harming.

So far, Trump has collected $149.2 billion in customs duties during the first eight months of the year.

Nealy all of that is from US consumers and small businesses. The businesses either have to eat the cost or pass it on to consumers.

Those who cannot do either go out of business. Don’t worry about that either because Trump doesn’t.

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March 13, 2025: The Amazing “Success” of Trump’s 2018 Aluminum Tariffs in One Picture

I hope you can take a bit of headline sarcasm because the true story follows.

September 6, 2025: Trump’s Aluminum Tariffs Seriously Backfire Already

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September 30, 2025: A Sharp Deterioration in Consumers’ Views of their Current Situation

Consumer confidence declines again in September, led by current situation.

October 1, 2025: ADP Private Jobs Decline by 32,000 in September, Huge Negative Revisions

ADP revised August from +54,000 to -3,000 making 2 straight months of declines.

Trump-Related Sarcasm

Q: Is ADP in on the BLS conspiracy to make Trump look bad on jobs?
A: Obviously

Realistically, this is the expected result from inane tariffs. Close to half of all imports are items used in manufacturing, not end consumer items.

Small businesses and end consumers are getting killed by Trump’s tariffs.

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