US Soybean Farmers Hard Hit by Retaliatory Tariff from China
As harvest season for soybeans approaches, US farmers are forced to seek alternative markets as China retaliated against Trump’s #tariffs by suspending all imports of soybeans to the US. During the previous season, China would buy up as much as half of all US exports of soybeans.
This year, China is sourcing more soybeans from Brazil and Argentina to compensate for the shortfall from the US. As harvest season approaches, American farmers are expecting a bumper crop and are anxious to find buyers for their crops. The CEO of the US Soybean Export Council (USSEC), Jim Sutter, could not hide his worry in the current context.
China has hiked the tariff on US soybeans to 34%, making soybeans from other countries much cheaper. In 2024, US exported USD 24.5 billion of soybeans, and more than half, or USD 12.5 billion, went to China. In terms of production, China buys nearly one-quarter of the US #soybean production. Since May 2025, China has not purchased any US soybeans as the tariff tensions persist.
Aware of the farmers’ plight, Trump promised to help the farmers out a little bit during this transition period. It is worth recalling that the same situation occurred during Trump’s first term as President. At that time, Trump allocated tens of billions of dollars in aid to the farmers. However, the Trump Administration and the #USSEC are acutely aware that handouts are not sustainable in the long run.
Efforts are ongoing to find alternative markets for US soybeans. Being a huge market, it is hard to replace China, more so in such a short time. Another alternative is to use more locally to make other derivative products, such as animal feed or oil. The US farmers might have to drastically reduce their soybean planting if the Chinese market is not restored.
“You’re going to see substantial support for the farmers, and we’re also going to be working with the Farm Credit Bureau to make sure that farmers have what they need for next year’s planning. It’s unfortunate that Chinese leadership has decided to use the American farmers, soybean farmers in particular, as a hostage of pawn in the trade negotiations.”
US Treasury Secretary Scott Bessent
Adding another twist to the tale, the US recently approved a USD 20 billion finance package to Argentina. Then, Argentina lowered its export tax on soybeans, and China immediately swooped in to scoop up Argentinian soybeans at a discounted price.
Trump stated that he is ready to help the American soybean go through this difficult period. US Treasury Secretary Scott Bessent suggested that some of the higher revenue collected from higher tariffs can be redirected to agriculture to ensure #FoodSecurity.