U.S. Treasury Secretary Scott Bessent said on Thursday that the federal government would support American farmers in light of China's refusal to buy soybeans and that an announcement would be made on Tuesday.

American farmers overwhelmingly voted for President Donald Trump in the 2024 presidential election, Bessent said.

"We've got their backs," he added in an interview with CNBC.

Chinese importers have not yet bought soybeans from the autumn U.S. harvest during the trade war between Washington and Beijing, costing U.S. farmers billions of dollars in lost sales.

"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," Bessent said.

Trump said, opens new tab on Wednesday that soybeans would be a major topic of discussion when he meets with Chinese President Xi Jinping in four weeks.

Almost every recent U.S. trade deal included buying of American farm products, Bessent said, "so we're going to see other countries substitute for China." But despite efforts by the Trump administration and the soybean industry, no other countries have emerged as anywhere near able to replace the volumes that China usually buys.

He said a record harvest was also affecting prices.

Bessent said he met with Trump and Agriculture Secretary Brooke Rollins in the Oval Office on Wednesday and to expect some news on Tuesday on support for U.S. farmers, especially soybean farmers.

"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," Bessent said.

It will be very helpful for Trump and China's Xi to meet in person and set the framework for trade going forward, Bessent said.

"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.

REUTERS

US to support soybean farmers amid China lag, expect news Tuesday, Bessent says