Trade War Getting Worse for Soy Growers

Tariff increases announced by the Trump administration on China are a “worst case” scenario for U.S. soybean growers, according to the American Soybean Association. The President’s Twitter announcement over the weekend was confirmed this week, as U.S. Trade Representative Robert Lighthizer says he would move forward with the planned tariff increase on Friday. The Trump administration will increase tariffs on some $200 billion worth of Chinese goods from ten percent to 25 percent. A delegation from China will be in the U.S. Thursday and Friday as both sides look to wrap up the negotiations while many say Trump is trying to pressure China into an agreement. ASA President Davie Stephens says farmers, however “need a positive resolution of this ongoing tariff dispute, not further escalation of tensions.” China previously retaliated following tariffs from the Trump administration, targeting U.S. agriculture. With depressed prices and unsold stocks forecast to double before the 2019 harvest begins in September, Stephens adds “we need the China market reopened to U.S. soybean exports within weeks, not months or longer.”