NEW YORK -- The U.S. will provide a $16 billion aid package to farmers whose businesses have suffered from the ongoing trade war between Washington and Beijing.

President Donald Trump touted the aid on Thursday, which was announced earlier in the day by Secretary of Agriculture Sonny Perdue, saying it would be "paid for" by tariffs on Chinese goods.

"The $16 billion in funds will help keep our cherished farms thriving and make clear that no country has veto on America's economic and national security," Trump said at the White House.

The amount tops the $12 billion in support for U.S. farmers that the Trump administration extended last year.

Sen. Charles Grassley, a Republican from the agricultural state of Iowa, said in response Thursday on CNBC that although they understand Trump needs to be tough on China, "farmers do not want aid, they want trade."

Agriculture has been a crucial issue in the U.S.-China trade talks, and Beijing's retaliatory tariffs have cost American farmers income.

Trump said that he will meet Chinese President Xi Jinping at the Group of 20 summit next month in Japan.

"The payments appear to be sufficient in buying some limited and temporary goodwill," Bryce Bock, an agriculture analyst at IHS Markit, said in a statement.

"[But] this will not stop the industry from wanting a quick resolution to trade disputes," Bock added. "To the market, a deal brings long-term stability, expectations of market health and overall confidence, instead of having to wait for information on payments, and then have to wait however long for them to be calculated, processed, sent out and received."

Trump has urged China to buy more U.S. farm products, while Beijing has raised tariffs on American pork to 62% in two rounds of retaliation since last year. After Trump imposed higher tariffs on Chinese products earlier this month, buyers from that country canceled orders for 3,247 tons of American pork. China also has been buying soybeans from Brazil instead of the U.S.

The U.S. aid, dubbed the Market Facilitation Program, will provide $14.5 billion in direct payments to American farmers who produce grains, dairy goods and tree nuts. The payments will be made in up to three portions, with the first delivery starting in late July to early August. If the market remains unfavorable, the second and third payments will be distributed in November and early January.

The government-owned Commodity Credit Corp. will use $100 million to explore new export markets on behalf of U.S. farmers and potentially negotiate new agriculture deals.

The remaining $1.4 billion will be used for the Food Purchase and Distribution Program to buy products hit by the trade war, such as fruits, vegetables, beef, pork, lamb, poultry, milk and some processed food. These products will be distributed to food banks, schools and outlets catering to low-income individuals.