US promises major aid for farmers after China stops soybean purchases

American farmers could lose billions of dollars after Chinese buyers stopped purchasing US soybeans because of rising tensions between the two countries. To reduce the damage, US Treasury Secretary Scott Bessent announced that the government will soon roll out new measures to support the agriculture sector.

Bessent told CNBC that the federal government will stand by the farming community, which strongly backed President Donald Trump in the 2024 election. “We’ve got their backs,” he said.

Speaking to Reuters, he added, “It’s unfortunate that Chinese leadership has decided to use the American farmers, soybean farmers in particular, as a hostage or pawn in the trade negotiations.”

On Wednesday, Trump said that soybeans will be a major issue of discussion when he meets Chinese President Xi Jinping in four weeks.

Bessent explained that buying US farm products has been part of almost every recent American trade deal. “So, we’re going to see other countries substitute for China,” he said.

But so far, even with efforts from both the administration and the soybean industry, no other country has come close to replacing the massive volumes usually bought by China. A record harvest this year has also pushed prices further down.

Bessent said he met Trump and Agriculture Secretary Brooke Rollins in the Oval Office on Wednesday.

He told farmers to expect “substantial support” to be announced on Tuesday, with a focus on soybean growers.

“On Tuesday, you’re going to see substantial support for the farmers, and we’re also going to be working with the Farm Credit Bureau to make sure that the farmers have what they need for next planting season,” he said.

He also said that a direct meeting between Trump and Xi would help decide the future of trade relations.

“I think with President Trump's leadership and his relationship - the respect party chair Xi has for him - that this round, which would be our fifth round of talks, should show a pretty big breakthrough,” Bessent said.