Golden leaf farmers watching Trump, Xi discussions

(The Center Square) – From the Civil War to the 21st century, tobacco was long the king in crops for North Carolina.

Congressmen from the state are asking for prioritization of the golden leaf to help the state’s farmers when second-term Republican President Donald Trump meets with China President Xi Jinping. American tobacco farmers, greatly impacted by the 1998 Master Settlement Agreement and end of the federal quota system in 2004, now face threats with future tariff relief programs and inexpensive foreign-grown tobacco that undercuts domestic markets.

In a joint plea to Trump, both North Carolina Republican members of the U.S. Senate, 10 Republican members of the U.S. House of Representatives and one Democrat in the House from the state said China is the single-largest buyer on the export market at 60-65 million pounds annually.

“Farmers were recently informed that China will not purchase flue-cured tobacco from the 2025 crop, a decision made by the Chinese Communist Party to gain leverage in ongoing trade negotiations with the United States,” the 13 congressmen and seven of their colleagues from neighboring states said.

Lawmakers said foreign countries pay a premium price for American tobacco because of superior quality. The export markets have existed since the years prior to the Revolutionary War.

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“As you prepare to meet with President Xi Jinping,” the congressmen said, “we urge you to elevate the priorities of American tobacco farmers and ensure our tobacco farm families receive fair treatment in trade negotiations, just as you did during your first term and have promised to continue to do for all of American agriculture.”

Specifically, the president is also asked to guarantee “any future relief includes flexibility to provide assistance for tobacco growers; minimize the importation of cheap, foreign-grown tobacco that undermines our farmers; and working with your administration to ensure tobacco leaf is promoted to the fullest extent allowed by the Doggett Amendment.”

The Tarheel State exported $5.9 billion worth of tobacco to China in 2024. The golden leaf was the No. 1 crop in the state from the late 1800s to about 2001.

North Carolina, ninth largest state at an estimated 11.1 million, has more than 800 tobacco farms producing 200,000 jobs. Previous farmgate values – gross value of tobacco sales directly from the farm to the first handler or market – were $470 million despite excessive rainfall and historic droughts in 2024, and $541 million the year prior.

Sen. Ted Budd, R-N.C., and Rep. David Rouzer, R-N.C., authored the message. Signatories included Sens. Thom Tillis, R-N.C., Lindsey Graham, R-S.C., and Tim Scott, R-S.C.; and Reps. Don Davis, D-N.C., Richard Hudson, R-N.C., Dr. Greg Murphy, R-N.C., Chuck Edwards, R-N.C., Virginia Foxx, R-N.C., Tim Moore, R-N.C., Brad Knott, R-N.C., Pat Harrigan, R-N.C., Rev. Mark Harris, R-N.C., Addison McDowell, R-N.C., John McGuire, R-Va., Jen Kiggans, R-Va., Morgan Griffith, R-Va., Ben Cline, R-Va., and Russell Fry, R-S.C.

Copied on the letter were departmental secretaries Scott Bessent (Treasury), Brooke Rollins (Agriculture), Howard Lutnick (Commerce) and Marco Rubio (State), and trade Ambassador Jamieson Greer and China Ambassador David Purdue.

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The Master Settlement Agreement settled lawsuits on tobacco-related health care costs, establishing funding to states and restricting tobacco company practices with special regard to youth. It involved 46 states, five territories and the four largest American tobacco companies.

The Fair and Equitable Tobacco Reform Act in 2004, colloquially known as the tobacco buyout, ended New Deal-era quota and price support programs. Farmers were compensated for lost assets.

Use of federal money to promote the sale of export of tobacco products abroad is prohibited by the Doggett Amendment enacted in 1997.

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