 "Donald Trump and China's President Xi Jinping. File image/ Reuters")
US President Donald Trump said on Sunday that he hoped China would quadruple its soybean orders from the US, emphasising that this would also be “a way of substantially reducing” Beijing’s trade deficit with Washington.
“China is worried about its shortage of soybeans. Our great farmers produce the most robust soybeans. I hope China will quickly quadruple its soybean orders. This is also a way of substantially reducing China’s trade deficit with the US. Rapid service will be provided. Thank you President Xi,” Trump said on Truth Social.
A tariff truce between Beijing and Washington is due to expire on 12 August, but the Trump administration has suggested the deadline could be extended.
China, which accounts for more than 60 per cent of global soybean imports, mainly buys the crop from Brazil and the US.
The most active soybean contract on the Chicago Board of Trade (CBOT) was up 2.13 per cent at $10.08 a bushel at 0446 GMT, after being largely unchanged before Trump’s statement.
Last year, China imported roughly 105 million metric tons of soybeans, with just under a quarter coming from the US and most of the rest from Brazil. Quadrupling shipments would require China to source the majority of its soybeans from the US.
“It’s highly unlikely that China would ever buy four times its usual volume of soybeans from the US,” said Johnny Xiang, founder of Beijing-based AgRadar Consulting.
Impact Shorts
More ShortsIn recent years, China has steadily reduced its reliance on US soybeans, shifting more of its purchases to South American counteries.
Under the Phase One trade deal signed during Trump’s first term, China agreed to boost purchases of US agricultural products, including soybeans. However, Beijing ultimately fell far short of meeting those targets.
This year, amid continuing trade tensions between Washington and Beijing, China has yet to purchase any US soybeans for the fourth quarter, raising concerns as the US harvest and export season approaches.
The US soybean industry has been looking for alternative buyers, but no other country matches China’s scale. Last year, China imported 22.13 million tons of soybeans from the US, and 74.65 million tons from Brazil.