China has stopped buying U.S. soybeans as a result of a trade war between the two nations. Bunge Ltd. CEO Soren Schroder told Bloomberg this week that China is instead buying soybeans from Canada and Brazil. China last month announced the planned tariff on U.S. soybeans, shifting the nation’s buying habits. The tariffs are part of an ongoing trade dispute between the U.S. and China that started with President Trump’s steel and aluminum tariffs. The soybean tariff has not yet been imposed.
Chinese traders appear to be moving away from U.S. soy because of the potential cost increase. Bunge is the world’s biggest oilseed processor, and Shroder says the company has been able to fulfill demand in China by filling shipments with supplies from outside the United States. A recent study projected that U.S. soybean exports are projected to drop by $4.5 billion to $7.7 billion because of the 25 percent tariff.
Soybeans were able to overcome pessimistic mindsets over trade, up over 11 cents the last thirty minutes of trade, settling +8 ¾ on Thursday. A U.S. delegation to Beijing, that includes U.S. Trade Representative Robert Lighthizer, has been in deliberations since Wednesday with their Chinese counterparts to discuss the trade deficit of $550B, intellectual property theft, and access to financial markets.