Wally Tyner, Purdue University Professor, says economies of both China and the U.S. stand to lose about the same amount, about three billion dollars, if China imposes tariffs on U.S. soybeans and if those tariffs stay in place for over two years.
“China produces only about 16 percent of its soybeans and imports all the rest. So, the price of all of their soybean imports would go up because of the tariffs. That means that the whole system in China that uses soybeans, the animal feed system that uses the meal, the oils are used throughout the food system, and other uses (such as) cosmetics and the like, and so that would have a very serious adverse impact on the Chinese economy, as well as the US economy, and our estimate is that they’re about equal.”
American and Chinese officials have both indicated a willingness to find a negotiated solution to their trade differences. Top government officials are expected to hold talks before American tariffs on Chinese imports will take effect. White House Trade Adviser Peter Navarro tells CNBC that Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer will lead the talks.