American agricultural markets may be at risk should China choose to retaliate against Steel and Aluminum tariffs. Specifically the vulnerable markets are soybeans, beef abd grains including sorghum. Such a ban could be a boon for Australia and South America.
American agricultural markets may be at risk should China choose to retaliate against Steel and Aluminum tariffs. Specifically the vulnerable markets are soybeans, beef abd grains including sorghum. Such a ban could be a boon for Australia and South America.
Source; Farm Policy News
Agriculure at Risk
Soybeans
China is the biggest impoter of American. soybeans, taking up a massive 60% of U.S. soybean exports, China has the option of buying from Brazil and Argentina, but can they meet demand and price. Ironically soybeans are heavily subsidized in the U.S. . What was that about free trade?
John Heisdorffer, a farmer from Iowa and president of the American Soybean Association. “Our competition in Brazil and Argentina is eager to capitalize on whatever openings these tariffs create for them in markets like China and elsewhere.”
Beef
Just last year President Trump and President Xi Jinping championed a deal where the U.S began exporting beef to “the fastest-growing meat market in the world,” after a 14-year break. This deal would appear the most vulnerable given its freshness. Australia and Argentina the obvious benefits.
Grains
Further to soybeans, grain such as sorghum are also huge U.S. exports, China launched an anti-dumping probe into sorghum exports just two weeks following the announcement of U.S. tariffs on washing machines and solar panels. Australia has seen its exports of Sorghum skyrocket to Asia in the past few years.