Soybean sector against Trump

The American Soybean Association (ASA) expressed its concerns Monday, March 12, about countermeasures China may take against the US soybean sector. This is in response to US President Donald Trump's import tariffs on steel and aluminum.

Concerns about the possible consequences of the import tariffs are increasing. That is why John Heisdorffer, chairman of the ASA, wrote in a letter to Trump that he must lift the tariffs. This is because otherwise it could result in other countries, especially China, taking countermeasures that could hit the soybean sector hard.

The situation is important to the ASA, as China has become the largest consumer of United States (US) soybeans in the last 10 years; 61% of total soybean exports go to China.

The ASA fears that Brazil, now the world's largest soybean exporter, will take over from the US with regard to China. The soybean industry and export is vital to the US economy. 

Influence on the market
Meanwhile, US soybean exports are declining. This while the export to China is going well. Due to the potential trade war, the price of soybeans on the CBoT fell from over $390 (week 10) to $380 per tonne (Monday, March 12). The Chinese are not reacting positively to the news: the soybean quotation on the Chinese futures market of Dalian showed a small decline.

It was previously reported that Europe threatens reprisals, such as a hefty import tax on maize. Steel wouldn't be so much of a problem for Trump, though, because the US steel industry in good shape† According to the Financieele Dagblad, Trump's burgeoning trade conflict is about European cars. The European rate for cars from the US is 10%, while the Americans only levy 2,5% on vehicles from the EU.

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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