Amid trade tensions between the U.S. and China resulting from President Trump’s proposed tariffs on steel, aluminum, and electronics from China, the world’s largest importer of soybeans is no longer importing from the United States, according to a Bloomberg report.
Soybeans are the second-largest U.S. crop—and in 2017, China bought $14 billion of it.
“Whatever they’re buying is non-U.S.,” said Bunge CEO Soren Schroder. “They’re buying beans in Canada, in Brazil, mostly Brazil, but very deliberately not buying anything from the U.S.”
China has suggested a 25 percent tariff on pork, soybeans, corn, beef, and sorghum imports from the U.S. In late April, it cancelled a net 62,690 metric tons of U.S soybean purchases for the year. Schroder acknowledged a “big cloud of uncertainty that’s likely to continue.”
Brazil and Canada are picking up the supply slack—Brazil is expected to surpass the U.S. in global exports this year, with sales of 73.1 million tons over a projected 56.2 million tons from the U.S.
Global oilseed processor Bunge has filled the China soybean demand with shipments from South America.
“I would rather say that we would prefer that free trade and no disruptions take place because it’s not good for anyone,” Schroder said.
Source: Des Moines Register
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