If the US tariff war does not stop, China will not buy US soybeans? In the stalemate, American soybean farmers suffered heavy losses, and three major consequences have surfaced. Does Trump want to find a way out?
In the first half of this year, in the face of U.S. President Trump's tariff war, China also suspended imports of U.S. soybeans while counteracting in the tariff field. China has always been the largest soybean buyer in the United States. In the past, it basically purchased about 20 million tons every year, accounting for about 40% of U.S. soybean exports. However, since May this year, China's orders for U.S. soybeans have all been zero, and orders have been sent to countries such as Brazil and Argentina. In August this year, China's soybean imports were 12.279 million tons, of which 10.49 million tons were purchased from Brazil, accounting for more than 85% of the total imports for the month. Within two days on September 23 and 24, China purchased another 20 ships of soybeans from Argentina, totaling 1.3 million tons, which broke the defense of American soybean farmers.
Recently, U.S. soybean growers, the Soybean Association and some lobby groups protested the White House, saying Trump’s tariffs on China were the direct reason that U.S. soybeans could not be sold out. And soybeans warned that even if the Trump administration has now reached an agreement with China, it will not catch up with this year’s harvest season. At present, tens of millions of tons of soybeans are accumulated across the U.S. farmhouse, and no deal is going to be bad, if there are no Chinese buyers, the U.S. soybeans industry may face a devastating blow, which is the first consequence of China’s “soy counteraction.” The second consequence is that Republican stockpiles are not likely to beined. U.S. soybeans are mainly produced in Ill
Finally, in Sino-US relations, facing the pressure of soybean farmers, in August this year, Trump called on China to buy American soybeans quickly, demanding that the order be increased to four times that of previous years, which China directly chose to ignore. Trump hasn't figured out China's demands yet, or he is pretending to be confused. He is unwilling to give up the tariff card, but also wants to sell soybeans to China, and even more, he wants China to supply enough rare earths. This mentality of both need and need is a disrespect for China's national interests and a misjudgment of Sino-US relations. As a result, Trump will personally taste the bitter fruit of "anti-China", followed by American soybean farmers, enterprises and ordinary consumers.
In order to solve the urgent need, Trump began to look for a way out, that is, to send money. Recently, Trump revealed to the media that he will launch an agricultural assistance program to subsidize part of the tariff revenue to the affected American farmers, saying that this is a big sum of money. He also claimed that the tariff policy of the United States would "bring benefits" to farmers, implying that even if there were some losses in the short term, American farmers should hold on and believe in his decision. Where does Trump's confidence come from? It may be tariff revenue, but after the US tax increase, the cost of imported goods will increase, and the price will basically increase. In the end, these increased costs will be paid by the American people. Farmers in the United States are also consumers. Pesticides and fertilizers in the United States are highly dependent on imports. Trump's tax increase policy will lead to an increase in the price of agricultural inputs. On the one hand, soybeans cannot be sold, and on the other hand, planting costs increase. How can American farmers "win"?
China's countermeasures, can be said to hit the pain point of the United States, whether it is the import of grain or rare-earth exports, all let Trump ride the tiger difficult, honestly look for China negotiations. Things have developed to now, the United States should see China's shift, "fight, accompany the end" is not an empty word, China is said to do. In the future, China and the United States have a lot to deal with, Trump's intimidation, coercion to China, learn to respect China's concerns, listen seriously to China, is a wise choice. At present, Brazil and Argentina are occupying the U.S. soybeans market in China, a lot of things can not go back, unless the U.S. makes enough to impress China's conditions or prices, this is the cost