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US soyabean farmers face crisis as China halts purchases amid tariffs
US soybean farmers face deep concern as China has halted purchases in retaliation for US tariffs, jeopardizing their businesses. Beijing's boycott, imposing up to 34% tariffs, makes US soybeans uncompetitive, leaving farmers fretting over their top export. Aid is being considered amidst stalled trade talks.
The leafy soyabean plants reach Caleb Ragland's thighs and are ripe for harvest, but the Kentucky farmer is deeply worried. He doesn't know where he and others like him will sell their crop because China has stopped buying.
Beijing, which traditionally has snapped up at least a quarter of all soyabeans grown in the US, is in effect boycotting them in retaliation for the high tariffs President Donald Trump has imposed on Chinese goods and to strengthen its hand in negotiations over a new overall trade deal. It has left American soyabean farmers fretting over not only this year's crop but the long-term viability of their businesses, built in part on China's once-insatiable appetite for US beans.
"This is a five-alarm fire for our industry," said Ragland, who leads the American Soybean Association trade group. If no deal is reached soon, they hope the government will come through with aid as it did during Trump's first term. Trump said Thursday he is considering an aid package. US and Chinese officials have held four rounds of trade talks between May and September, with another likely in the coming weeks. No progress on soyabeans has been reported. After Trump imposed tariffs on Chinese goods, China responded with tariffs of its own, which now total up to 34% on US soyabeans. That makes soyabeans from other countries cheaper.
Soyabeans are the top US food export, accounting for about 14% of all farm goods sent overseas. And China has been by far the largest foreign buyer. Last year, the US exported nearly $24.5 billion worth of soybeans, and China accounted for more than $12.5 billion.
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Source: EconomicTimes
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