Who Stands To Lose The Most In Ag In Trade With China?

May 3, 2018 02:52 PM
 
 

This week, President Trump sent a delegation of trade officials to China to “stop an escalation of trade barriers.”

According to U.S. Treasury Secretary Steven Mnuchin, the Trump administration will work to protect U.S. farmers from the trade dispute.

Mnuchen, Commerce Secretary Wilbur Ross, and U.S. Trade Representative Robert Lighthizer are part of the delegation, and so far there have been no planned press conferences by either the Chinese or the U.S.

China is the top trading destination for U.S. commodities, and their top import is soybeans. According to Bunge CEO Soren Schroder, China is now sourcing soybeans from Brazil and Canada rather than the U.S.

“We sell one out of three rows of our soybeans to China,” said Dr. Robert Johansson, chief economist for USDA. “If China does impose a 25 percent tariff and it goes into effect, that’s going to really throw the market for a bit of a loop.”

Hear why Johansson believes the U.S. can find different markets in the global market place with U.S. Farm Report host Tyne Morgan in Washington D.C. on AgDay above.

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Comments

 
Spell Check

Reid A Haberer
Lowry, MN
5/3/2018 04:24 PM
 

  The US could sell all the beans that normally went to China to the countries in South America, then those countries would have a monopoly on the global supply thus allowing them to force china to pay even more than they would have from the US, the beans that China would be forced to buy from South America would still ultimately ship from the US and the beans would never need to actually go to SA. The SA countries could then do a pay back bonus to the US.

 
 
Charles Wrather
Silverthorne , CO
5/3/2018 05:35 PM
 

  Time to focus on how to get that market back. The political situation must change. Relations with China will then have to be re-established and improved considerably. Can South America grow all the soybeans and other crops the Chinese buy? Are there other markets US soybeans that can be developed?

 
 

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