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US Treasury Secretary Scott Bessent said on Thursday that the federal government will provide support to American farmers in response to China's decision to halt soybean purchases. Reuters reported that an official announcement is expected on Tuesday.
Bessent noted that the majority of American farmers backed President Donald Trump in the 2024 election.
"We will support them," he said in an interview with CNBC.
Chinese importers have yet to buy soybeans from the US autumn harvest amid the trade war between Washington and Beijing, which has already cost American farmers billions of dollars in losses.
"Unfortunately, the Chinese leadership has chosen to use American farmers, particularly soybean producers, as hostages or pawns in trade negotiations," Bessent said.
President Trump had earlier stressed that soybean supplies would be a key topic during his meeting with Chinese President Xi Jinping in four weeks' time.
Bessent noted that almost every recent US trade deal has included purchases of American agricultural products. "We will see other countries stepping in to replace China," he said. However, despite the efforts of the Trump administration and the soybean industry, no country has yet been able to make up for the volumes that China typically buys.
He added that a record harvest is also weighing on prices.
Bessent said he met with Trump and Agriculture Secretary Brooke Rollins in the Oval Office on Wednesday to discuss measures to support farmers.
"You will see significant support for farmers on Tuesday. We will also work with the Farm Credit Bureau to ensure farmers have everything they need for the upcoming planting season," he said.
Bessent added that an in-person meeting between Trump and Xi would help lay the groundwork for future trade relations. "I believe that thanks to President Trump's leadership and the respect President Xi has for him, this trip - the fifth - should achieve a major breakthrough," the Treasury Secretary said.
Source: Reuters