Chinese Retaliation Now Reality: ASA Responds

April 4, 2018 09:40 AM
 
The American Soybean Association (ASA) is expressing its extreme frustration about the escalation of a trade war with the largest customer of U.S. soybeans, China.

The American Soybean Association (ASA) is expressing frustration about the escalation of a trade war with China. On Wednesday, China issued a $50 billion list of U.S. goods - including soybeans - for possible tariff hikes in an escalating dispute.

“We have been warning the administration and members of Congress that this would happen since the prospect for tariffs was raised,” said John Heisdorffer, ASA President and Iowa farmer. “That unfortunately doesn’t lend any comfort to the hundreds of thousands of soybean farmers who will be affected by these tariffs.”

China, the largest customer of U.S. soybeans, announced a proposed tariff of 25 percent on imported U.S. soybeans. According to ASA, China purchases 61 percent of total U.S. soybean exports, and more than 30 percent of overall U.S. soybean production.

“This is no longer a hypothetical, and a 25 percent tariff on U.S. soybeans into China will have a devastating effect on every soybean farmer in America,” Heisdorffer said.

The knee-jerk reaction in Chicago has been drastic, with soybean prices on the Chicago Mercantile Exchange dropping 50 cents overnight, and falling another 30 cents Wednesday morning.

China’s tax agency gave no date for the increase to take effect and said that will depend on what President Donald Trump does about U.S. plans to raise duties on a similar amount of Chinese goods.

“We call on President Trump to engage the Chinese in a constructive manner—not a punitive one—and achieve a positive result for soybean farmers,” said Heisdorffer.

 

Editor's note: Additional information from Associated Press

 

 

Back to news


 

Comments

 
Spell Check

C.K
bad axe, MI
4/5/2018 06:52 AM
 

  The United States shouldn't of took advantage of it's world reserve currency status the last 40 years and printed 70 trillion worth of in house credit market debt . It wouldn't be going bankrupt now and have a trade problem. If you have a neighbor that's broke all the time and don't pay his bills do you line up to do business with him ? Most would say NO. So why would you do business with the USA. Trump can't print anymore fiat and he is using Mafia tactics against the world and the world ain't taking his BS anymore. Utopia is over in the United States.

 
 
Gary Haraseth
Langdon, ND
4/5/2018 08:15 AM
 

  Let Trump be Trump. He is only trying to keep his campaign promises.

 
 
Ronald Frankenstein
Redfield, SD
4/5/2018 09:47 AM
 

  Does one really think China will for very long limit themselves to one soybean supplier (South America)? If they do, South America will set the world price, and it will be a significant premium over what would be normal. I don't think China will be that stupid. If China buys all the South American beans, the U. S. will sell theirs to those unable to pay the higher prices South America has now reaped. Higher prices for all?????

 
 

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close