Touch the Soil News #985 (Feature photo – Soybeans in the Middle of Trade War – photo courtesy of USDA)
The Presidential Administration is moving the nation towards a trade war with China. China is moving to retaliate. Some of the numbers floating around are that the U.S. may impose tariffs up to $150 billion on Chinese imports to America and the Chinese may retaliate by imposing tariffs up to $50 billion of American exports to China. Since money does not grow on trees, it will be the poorer factions of both countries that pay the price for the trade war.
Agriculture and food are caught in the middle. If Americans have to pay more for Chinese imports and Chinese need to pay more for American imports looks like millions of people might lose.
China is the world’s largest importer of soybeans – and American is one of their largest suppliers. The Presidential Administration is now saying that if the Chinese put tariffs on American soybeans entering China, the USDA will buy what farmers can’t sell to China. This means the American taxpayer will end up with that cost.