The US-China trade war is escalating further. On Tuesday, October 14th, President Trump stated that the Chinese Communist Party (CCP) is deliberately not buying American soybeans. In response to this hostile behavior, the US is considering terminating some trade with China, including Chinese edible oils. He also warned that dealing with the CCP requires caution.
President Trump posted on his social media platform “Truth Social”, “I believe that China (CCP) is deliberately not purchasing our soybeans, causing difficulties for our soybean farmers, which is an act of economic hostility.”
“As a retaliation, we are considering terminating business dealings with China in edible oils and other trade elements. For example, we can easily produce edible oils ourselves without buying from China,” the President said.
During his meeting with Argentine President Mile on Tuesday at the White House, President Trump discussed the issue of dealing with the CCP.
“We must be cautious when dealing with China (CCP),” he said.
He further explained that although his relationship with the CCP leader Xi Jinping is good, this relationship is sometimes tested because the CCP “likes to take advantage of others, but they cannot take advantage of us”.
Soybeans are important raw materials for China’s food and livestock industries, as well as a core item in bilateral agricultural trade between the US and China.
China is the world’s largest buyer of soybeans. In recent months, amid tariff and trade disputes, China has significantly reduced its purchases of US soybeans and turned to Brazil and Argentina for purchases. This has put pressure on soybean futures prices at the Chicago Board of Trade.
According to US government data, from January to July this year before the autumn harvest started, US soybean exports to China decreased by 39% to 5.9 million metric tons. Export value decreased by 51% to $2.5 billion.
In addition to seeking retaliatory measures against the CCP, the Trump administration has announced policies to support farmers. At the same time, the US is also looking for markets other than China to help farmers share risks and reduce losses. During a trade delegation visit jointly hosted by the US Soybean Export Council in June, the Vietnamese Minister of Agriculture signed a memorandum of understanding to purchase over $1.4 billion worth of US agricultural products, including soybeans.
Since President Trump returned to the White House in January, the US has engaged in trade negotiations with multiple countries. Treasury Secretary Benson revealed that almost every trade agreement signed by the US with foreign countries includes the purchase of American agricultural products, “so we will see other countries replacing China (in the market)”.