What worries the farmers most?

The standard was raised to an unprecedented level, followed by the direct announcement of zero tariffs on soybean exports on September 22, which combined the two tricks to hit the Trump administration.

Data show that in the first eight months of this year, Argentina exported 1.23 million tons of sorghum to China, of which 1.22 million tons were all shipped to China. This figure completely panicked the U.S. agricultural sector.

What makes Washington even more unacceptable is that Argentina, as a traditional ally of the United States, is openly robbing Chinese orders that should belong to the United States at this juncture.

There are many doorways hidden in the recent resolution issued by the Argentine Agricultural Secretariat.

They divided the export of high-grade uranium by grade into three standards per hundred liters of 72 kilograms, 70 kilograms and 67 kilograms, while imposing strict restrictions on the content of fragments and non-grain materials, and goods that do not meet the standard will lose export certification qualification.

This standard is much stricter than before, in order to make China buyers feel that Argentine goods are reliable.

Argentina is showing good to the Chinese market, China was originally a big customer of the United States, but with the escalation of trade friction, China shifted to purchase from other countries.

Argentina has seen the opportunity to fight for more orders by improving product quality, a practice that, while in line with the rules of the market, is undoubtedly a bottom-up for the United States.

Hemp is just the stomach dish, and soybeans are the real game.

On September 22nd, the Argentine government suddenly announced an explosive news: from now until October 31st, all export tariffs on grains and their manufactured products will be completely abolished.

After Argentina introduced this policy, China buyers ordered at least 10 ships of Argentine soybeans, each ship of approximately 65,000 tons, with shipment scheduled in November.

Calculated, the total order volume exceeds 650,000 tons, and the cost is much cheaper than U.S. soybeans.

Why does Argentina dare to do this? In the final analysis, the economic pressure is too great. Argentina's domestic inflation rate is as high as double digits, and the government urgently needs foreign exchange to stabilize the economy.

The export tariffs on soybeans were reduced from 26% to zero, and the export tariffs on soybean oil and soybeans were also reduced from 24.5% to zero, although this policy lasted only until the end of October, but it was enough to blow up the international markets.

For Argentine farmers, this is a rare opportunity to make more money. For China buyers, the price is affordable and the quality is guaranteed, so they are naturally willing to place orders.

The situation on the U.S. side is less optimistic, with China importing 22.13 million tons of U.S. soybeans in 2024, down 5.7% compared to the same period, and importing 74.65 million tons of Brazilian soybeans, up 6.7% compared.

The share of U.S. soybeans dropped to 21 per cent in 2024, while the share of Brazilian soybeans rose to 71 per cent, a shift in numbers that shows all that U.S. soybeans market share in China is rapidly being consumed by South American countries.

In March this year, the situation became more complicated. Since March 10th, China has imposed tariffs on some imported goods originating in the United States, including a 15% tariff on wheat and corn, and a 10% tariff on sorghum and soybeans.

This policy has further weakened the price advantage of American agricultural products. At the same time, Chinese customs detected ergot and seed coating soybeans in imported American soybeans, and suspended the qualifications of three companies including CHS Inc. of the United States to export soybeans to China.

Quality issues, coupled with tariff issues, are making the days of American farmers more and more sad.

In fact, Trump has long realized the seriousness of the problem. He has repeatedly expressed his position on social media, hoping that China can increase its purchase of American soybeans, and even proposed to triple the purchase volume.

But the ideals are abundant, and the reality is bone-sensed, when Argentina breaks out a bloody path with a zero-tariff policy, the American farmers in the hands of soybeans can only watch the price down.

Behind this battle for agricultural products, it actually reflects the profound changes in the international trade pattern. As the world's largest importer of agricultural products, China has the right to purchase options in its own hands.

From 2025 to 2034, China¡¯s soybean imports are expected to increase from 1.215 billion tons to 1.440 billion tons.

With such a large market capacity, countless countries naturally want a piece of the pie. If the United States still holds the boss mentality and uses tariffs and sanctions to exert pressure, it will only end up ceding the market to others.

While Argentina¡¯s approach irritates Washington, it is perfectly logical from a business point of view. Countries conduct trade cooperation according to their own interests, which is the basic rule of a market economy.

China needs soybeans, Argentina can provide quality and inexpensive goods, both sides come together, the United States is not qualified to say three or four, let alone it is the United States itself that provokes trade friction, only forcing Chinese buyers to go to other countries.

The choice now facing Trump is simple: either put down the shelves and negotiate with China on an equal footing to find a way to resolve the trade dispute; or continue to harden the end, watching the orders of American farmers go missing one by one.

From the current situation, time is not on the side of the United States, Argentina, Brazil, Australia and other countries are fighting for the Chinese market, and the crisis of American farmers will only deepen.

International trade has always been a game of mutual benefit and win-win, and unilateral pressure will only backfire.

Argentina has used practical actions to prove that whoever is willing to show sincerity and high-quality products can gain a firm foothold in the China market. If the United States wants to turn around the situation, the key must rely on equal dialogue and pragmatic cooperation. This is the solution to the problem. The right way.

Article/Editor: Money Junkies