US-China trade wars escalate as soybeans become new frontier
(MENAFN) Soybeans have emerged as a key point of contention in the ongoing US-China trade disputes, with escalating measures from both sides affecting global commodity markets.
China recently restricted rare earth exports, prompting US President Donald Trump to announce a 100% tariff on top of existing rates from Nov. 1, alongside export controls on critical software. Trump has also criticized China for “purposefully not buying” American soybeans.
China, meanwhile, has diversified its soybean imports, increasingly sourcing from Brazil instead of the US. Reports suggest that China has yet to secure significant soybean shipments for December and January, while high Brazilian prices are deterring buyers. Analysts note that Beijing may tap into state reserves of around 44 million tons to meet near-term needs, influencing global soybean markets.
Soybeans began 2025 at $10.10 per bushel, dipped to $9.70, and later stabilized near $10.82. Sadi Kaymaz, an Asia markets expert, said soybeans carry “sociopolitical importance in Washington” due to the role of farmers in Trump’s election. The US and Brazil are the world’s top soybean exporters, while China relies heavily on imports for its livestock industry.
China has imported record volumes from Brazil, with 79 of every 100 tons exported going to China in the first nine months of the year. High interest rates, rising fertilizer costs, and geopolitical tensions are adding pressure on US farmers, while potential trade war ceasefires could boost soybean prices.
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