Trump Urges Farmers to ‘Bear With Me’ Amidst Tariff Crisis

(Bloomberg) — President Donald Trump is asking American growers to bear with him as tariffs threaten to hurt their business and deepen a farm downturn that’s entering a third year. Beijing has already enacted countermeasures on a range of agricultural commodities including soybeans, pork, and beef. Canada also hit back at Trump, retaliating against about $107 billion worth of US goods, including food products from meat to dairy. Mexico plans to make an announcement on Sunday.

Impact of Tariffs on American Farmers

The trade disputes are a blow for American farmers, a key voting bloc for Trump. But in a speech to Congress, the president promised his newly announced duties will yield even better results than the trade deal he struck with China during his first term. “It may be a little bit of an adjustment period,” he told Congress late on Tuesday. “We had that before when I made the deal with China, $50 billion of purchases and I said ‘just bear with me’ and they did, they did — probably have to bear with me again, and this will be even better.”

Recent Tariff Increases

The US raised tariffs on China to 20% and introduced 25% duties on most Canadian and Mexican imports this week. The administration also pledged to add duties on a range of farm purchases from April 2 as food imports balloon, driving the country’s agriculture trade deficit to a record $49 billion this year. On Wednesday, though, Commerce Secretary Howard Lutnick said Trump is set to announce changes to the tariffs on Canada and Mexico, with potential relief for automobiles and other sectors. He also suggested that a broader review due April 2 could incorporate goods that get relief this week.

Challenges Facing Farmers

Still, retaliatory tariffs already erased all of this year’s gains for corn and soybeans. That’s hurting farmers whose income has been under pressure for the last three years as the cost of seeds, fertilizer, and equipment went up and crop prices declined. Revenue from cash crops is expected to fall for a third year in 2025. And that was before any tariffs were in place.

“I really thought 2025 would bring about some relief for farmers — as of right now it still looks tough on the farm front, especially with tariffs threatening export markets,” said Jim Beck, founder of Arenzville, Illinois-based Strategic Commodities, which advises growers. “I trust and support President Trump. It’s unfortunate that we have to deal with the tariffs and the ever-changing headlines.”

Financial Distress Among Farmers

Curt Covington, senior director of institution credit at AgAmerica, the country’s largest independent farm lender, said he’s seeing the most distressed borrowers since the financial crisis. Barry Benson, head of agribusiness banking at First National Bank of Omaha, said roughly a third of the lender’s producers already had “some sizable losses” that required a degree of restructuring last year. If 2025 is worse, more and bigger reorganizations may be necessary, he said.

Conclusion: The Future of American Agriculture

Other measures taken by Trump have also had an impact on growers. That includes a funding freeze as the administration reviews a number of agricultural programs. The uncertainty surrounding tariffs and trade relations continues to pose significant challenges for American farmers, who are left hoping for a resolution that will stabilize their livelihoods. For more details, you can read the original article here.