(Bloomberg) -- President Donald Trump said that the U.S. will boost its purchases of domestic farm products for humanitarian aid in an effort to offset lost demand from China as trade tensions flare between the nations.
Trump said on Twitter on Friday that the U.S. will use its money from the tariffs to buy American agricultural products “in larger amounts than China ever did” and send it to “poor & starving countries” for humanitarian aid. Soybean and grain futures held mostly steady after the announcement.
“In the meantime we will continue to negotiate with China in the hopes that they do not again try to redo deal!” Trump said on Twitter. “Our farmers will do better, faster and starving nations can now be helped.”
Soybean and grain futures plunged this week as U.S. trade talks faltered with China, the world’s top oilseed buyer, and the Asian nation vowed retaliation as the U.S. boosted tariffs on $200 billion in goods.
Last month, the the World Trade Organization ruled that China didn’t follow proper procedures when it imposed trade restrictions on agricultural imports.