ABC News reports Trump says $12 billion bailout plan for farmers will come from tariff revenue

President Donald Trump announced a total $12 billion in funding to help American farmers during an event on Monday, and said that it would come from tariff revenue.

“I’m delighted to announce this afternoon that the United States will be taking a small portion of the hundreds of billions of dollars we receive in tariffs. … and we’re going to be giving and providing it to the farmers in economic assistance. And we love our farmers,” the president said.

The package includes $11 billion in one-time payments to crop farmers through a new Department of Agriculture bridge payment program. The remaining funds will then go to other crops not covered by that program.

Impact of Tariffs on Farmers

The aid package comes as the U.S.-China trade war has hit soybean farmers especially hard. Through most of this fall, during a bumper harvest season, China had blocked all purchases of soybeans from the U.S.

China was the biggest buyer of U.S. soybeans in 2024, accounting for $12.64 billion in sales, according to the USDA.

During Trump’s high-stakes meeting with Chinese President Xi in late October, the U.S. and China announced a framework trade agreement that included a deal on soybeans. China agreed to purchase 12 million metric tons of soybeans in the final two months of this year and 25 million metric tons in 2026, 2027 and 2028 — on par with levels before the trade war.

So far, China has purchased about 2.2 million metric tons of soybeans from the U.S. since the end of October, USDA data shows.

Farmer Bailout Step-by-Step

1. Launch a trade war.
2. China retaliates.
3. Soybean exports plunge to zero.
4. Propose a “one-time” farmer bailout similar to the “one-time” farmer bailout in his first term.
5. Fund the bailout with money collected from US taxpayers via tariffs which are a tax on US consumers and businesses.
6. Ignore everyone else damaged by these preposterous tariffs as if only farmers matter.

Please note the huge TACOs on tariffs. The average tariff rate is now about 18 percent or so, down from 50-100 percent announcements.

With tariffs down so much, so fast, TWS and MAGA parrots proclaim “See, tariffs did not cause huge price hikes.”

Since parrots cannot think, I will spell it out. The small impact of tariffs on goods is due to tariff front running, huge TACOs, and stockpiling goods ahead of the tariffs.

The impact is smaller but is present and was delayed.

The bigger impact that parrots don’t like to discuss is the destruction of small business employment.

No Inflation, Affordability Is a Hoax

Meanwhile, please note that Trump says there is “virtually no inflation” and “affordability is a hoax”.

To combat the alleged hoax, Trump Announces Two New Task Forces Will Investigate Food Prices

The DOJ and the FTC will each launch a witch hunt on high food prices.

Given there is no inflation, it’s amusing Trump has started two independent missions to find inflation.

The logical person might note the irony and contradiction of the setup, but I may need to remind you that parrots cannot think logically.

Trump Brags About Higher Beef Prices

In case you missed it, please note that Trump is bragging about higher beef prices and how ungrateful ranchers are for that.

Truth Social Link: The Cattle Ranchers, who I love, don’t understand that the only reason they are doing so well, for the first time in decades, is because I put Tariffs on cattle coming into the United States, including a 50% Tariff on Brazil. If it weren’t for me, they would be doing just as they’ve done for the past 20 years — Terrible! It would be nice if they would understand that, but they also have to get their prices down, because the consumer is a very big factor in my thinking, also!

So …

• There is no inflation
• Tariffs don’t cause inflation
• But Trump literally chastises ranchers that beef prices are high because of his tariffs
• Now to get beef prices down, Trump wants to reduce tariffs he put on that drove the price of beef up.

If you think that story seems to make no sense, then you are overlooking the obvious.

Q: What’s the obvious?
A: Trump is always right, no matter how contradictory it seems.

Trumpian Dissonance

Trumpian dissonance explains the simultaneous opinion that tariffs both cause and do not cause inflation.

Trumpian dissonance explains why its logical to go on a crusade to find inflation while maintaining there is none.

Trumpian dissonance explains why “affordability is a hoax.”

Everything makes perfect sense in the Trump alternate universe.

Related Posts

December 5, 2025: Welcome to Tariff Complexity Hell, No One Knows What Trump Will Do

Tariffs are a tax, and complexity adds to that tax.

December 3, 2025 : Small Businesses Drop 120,000 Jobs in November, ADP Total Down 32,000

It’s another grim month according to ADP.

Not a bit of this is a surprise to any thinking person. Trump owns all of it for overpromising and underdelivering.

But that’s OK because Trump Adopts Chicago Cubs’ Perpetual Message, “Wait Till Next Year”

President Trump’s advisers are counseling him to refine his economic message with a pitch to voters aimed at easing their anxiety about weak jobs growth and stubborn inflation.

Their new mantra: Just wait until next year.

Wait Till 2026” is a fundamental mistake. When 2026 is bad, the message will have to change.

The beauty of a more Cub-esque “Wait Till Next Year” is the slogan never has to change.

However, given that affordability is a hoax, things are glorious now. There should be no reason to have to wait for anything.

Regardless, “wait till 2026” is now “wait 22 days”. Feelin’ lucky?

Health Care Inflation Bomb

In case you missed it, please see Health Care Inflation Bomb Makes the Fed’s 2 Percent Target Almost Impossible

Let’s discuss 2026 health care premiums and what they mean to the Fed’s preferred measure of inflation.

I expect health care will add 1.5 percentage point to PCE inflation next year. If so, the Fed will start 2026 in a big hole.

See above link for the math and health care details.

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