Chinese farmers downplay soybean tariff, even sees opportunities
Part of the escalating trade spat between the two super economies, the proposed 25-percent Chinese tariff on American soybeans is expected to damage both countries but China, the biggest importer of US soybeans, said the effects will be manageable on their part.
Liu Cong, a soy farmer at the Heilongjiang province, said in a report that US soyben shipments “assaulted” the Chinese market as they entered “like wolves” eating up the local share.
Liu said the import tax on US soybean will bolster competition on the domestic front, which has been dampened by the ease and inexpensive cost in which US soybeans are shipped into China.
“This trade war is making our prospects really bright this year,” said Liu. “Everyone back home has high hopes for 2018.”
On the US side, the tariffs will be detrimental.
“We can sell more soybeans to these other, older, more mature markets, but it doesn’t change the fact that we’re being cut out of the fastest growing market in the world,” Burke said, adding that Beijing was better researched than Washington in hitting trade enemies where it hurt the most.
The potential soybean tariffs could shake up Trump’s political base as 89 percent of America’s soy-producing counties voted for Trump.