Trump accuses China of reducing soybeans as “economically aggressive” and threatens trade

president Donald Trump He accused China of launching an act of “economic hostility” by reducing its purchases of soybeans, and said he was considering ending US trade with China that includes cooking oil and other goods in retaliation.

“I believe that China intentionally not purchasing our soybeans, and causing hardship to our soybean farmers, is an act of economic hostility,” Trump wrote Tuesday on Truth Social. “We are considering terminating business with China regarding cooking oil and other items of trade, as a retaliatory measure.

“For example, we can easily produce cooking oil ourselves, and we do not need to buy it from China,” he added.

Trump’s comments come in light of the ongoing trade dispute with the United States China It continues to create serious headwinds for American farmers, as soybean producers lose access to the world’s largest market for the commodity.

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China stopped buying US soybeans in the spring, in response to tariffs imposed by the Trump administration. The move appeared to be a way for China as it looked to gain leverage in trade talks by shifting its purchases away from US producers to countries such as Brazil and Argentina.

Data from the American Soybean Association (ASA) shows that China is the world’s leading soybean importer, bringing in 61% of the world’s traded soybean supply over the past five marketing years.

The United States has historically served as a major supplier of soybeans to China, exporting an average of 28% of farmers’ crops to China before the 2018 trade war, the ASA said.

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This number fell to a low of 11% in the 2018-2019 agricultural year, although it recovered during the pandemic and reached 31% in 2020-2021. But from 2023 to 2024, the percentage dropped again, this time to 22%.

“We rely on trade with other countries, especially China, to buy our soybeans,” Brad Arnold, a multi-generational soybean farmer in southwest Missouri, told FOX Business in an interview earlier this month.

He said China’s halting of soybean purchases from the United States “has huge impacts on our business and revenues.”

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ASA Chief Economist Scott Geralt said in an interview with FOX Business that soybean farmers will need… Trade aid Soon due to harvest timing.

While older farmers who may own their own land or equipment may not be in great need, younger farmers who have to rent the land they farm and have operating notes face much greater risk, Gerlt noted.

“Having reliable trade partners is better in the long run,” he said. “Trade aid can help farmers survive in the short term, and help them stay in business and move forward into next year.” “But the problem is that if we are not in the markets now, this is just another signal south america To continue expanding.”

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Gerlet added that South American soybean producers in Argentina and Brazil are likely to benefit from China’s demand for soybeans amid the country’s trade dispute with the United States, which could have long-term implications for American farmers.

On Tuesday, FOX Business’ Edward Lawrence asked Trump if he believes China is trying to drive a wedge between the United States and Argentina by buying soybeans from Argentina and not from American farmers.

“I will say that,” Trump said. “China loves to draw pegs.”

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Trump later said: “I mean, I think that’s normal. It’s China, that’s normal.” “But it won’t mean anything in the end.”

FOX Business’ Eric Revell contributed to this report.