US soybean growers fear Chinese trade retaliation

Newly signed tariffs from the Trump administration may see affected countries targeting US soybeans due to their prominence in the agriculture industry, the American Soybean Association (ASA) said in a statement late Thursday.

“These tariffs may lead to retaliation by one or more of our valuable trading partners, which in turn will kneecap demand for soybeans in a time when the farm economy is struggling,” ASA President John Heisdorffer said.

President Trump announced Thursday the implementation of import tariffs on aluminium and steel tariffs as part of his so-called "America First" policy which will go into effect in just over two weeks, but exempt Canada and Mexico as they are part of ongoing NAFTA negotiations.

“We have heard directly from the Chinese that US soybeans are prime targets for retaliation,” Heisdorffer added, highlighting competition from Brazil and Argentina on the global trade front.

China imports about $14 billion worth of US soybeans a year.