Tariff action could quickly heat up and affect soybeans, economists warn

Soy leaders are keeping a close watch on tariff action out of the White House. China is a major buyer of U.S. soybeans, and economists warn the situation could quickly heat up.

“They dominate the global oil seed market and they import more than the rest of the world combined. And in 2018, when those Section 301 retaliatory tariffs went into place, we saw prices drop overnight by $2.00 a bushel and our market share evaporate. You know, USDA’s Economic Research Service put out a study assessing the economic damages done to us as a result of the trade. It showed $27 billion in losses for U.S. ag, and of that amount, our soybeans accounted for 71%,” said Virginia Houston.

President Trump has given both Canada and Mexico a February 1st start date for tariffs. Some ag leaders have warned the plan could backfire, while others support the move as an effort to boost U.S. trade.

Related Stories
The National Cattlemen’s Beef Association (NCBA) and Public Lands Council (PLC) are praising the passage of a bill to delist gray wolves as an endangered species by the U.S. House last week.
USDA Undersecretary Luke Lindberg told RFD-TV News that we can only guess what Congress will do down the road. Still, the USDA recognizes its responsibility to spend resources efficiently and effectively.
Tight feeder supplies and lower placements indicate continued support for the cattle market, with regional impacts heightened in Texas by reduced feeder imports.
Michelle Perez shares more about the American Farmland Trust’s resource to help farmers and producers plan soil health improvements.
Jeff Johnston with CoBank’s Knowledge Exchange explains the growing role of Rural America in supporting the nation’s digital infrastructure.
NRECA CEO Jim Matheson reacts to the U.S. House’s passage of the SPEED Act, which aims to streamline federal permitting for energy and infrastructure projects, and discusses its potential impact on rural communities.

LATEST STORIES BY THIS AUTHOR:

University of Nebraska–Lincoln ag educator Matt Kreifels discusses his recent FFA Alumni award and the future of ag education.
Mexico plans to release 202,000 acre-feet of water into the Rio Grande, offering temporary relief to South Texas farmers as Congress advances the PERMIT Act.
Analysts say that while low-income households are facing financial pressures, other middle- and higher-income consumers are helping fill the gap for retail beef demand.
Despite China’s sharp drop in grain purchases this year, new USDA export data this week shows that even some buying activity from the trade giant still moves the markets.