US soybean market in turmoil due to Chinese tariffs

VTV.vn - Trade tensions have caused China to reduce purchases, pushing the US soybean industry into difficulty as prices fall, inventories increase and exports plummet.

Farmers harvest corn and soybeans in a field in Bird-in-Hand, Pennsylvania, US. Photo: AFP/TTXVN

Each year, soybean production in the US is from 115 to 120 million tons, bringing in a value of 55 to 60 billion USD, of which more than half is for export, in which China is the main export market for US soybeans. Since the beginning of the year, trade tensions have caused China to reduce purchases and immediately affected the US soybean industry, which is currently in the harvest season.

China, which imported 45% of US soybeans last year, or about 27 million tons, has increased its tariff on US soybeans by 20%. In the first seven months of the year, US soybean exports to China fell 39% compared to the same period last year, equivalent to nearly 6 million tons.

The US president said the administration plans to spend $10 billion in revenue from increased import tariffs to compensate soybean farmers.

Soybeans are expected to be one of the topics discussed during the meeting between US President Donald Trump and Chinese President Xi Jinping later this month in South Korea within the framework of the APEC conference.

Mr. Gregory N.PoLing - Director of the Southeast Asia Program, Center for Strategic and International Studies, USA said: "I do not expect too much from the results of the meeting. China has imposed tariffs on the very products that were voted for by President Trump, as a way to increase pressure on the US government. Therefore, instead of looking for big goals, issues that have a profound impact on the world, the two sides will probably only have smaller agreements."

The US is currently boosting soybean exports to Türkiye, Bangladesh, Egypt, Thailand, Vietnam, and Malaysia, but overall exports are still down 8%.

Finding new markets takes time, from negotiating contracts, export standards to warehouse infrastructure, so the slowdown in Chinese purchases is having a negative impact on U.S. soybean growers, trade experts say.

Source: https://vtv.vn/thi-truong-dau-tuong-my-lao-dao-vi-thue-quan-trung-quoc-10025100714303269.htm