Trump’s tariffs are hurting farmers as Chinese soybean imports drop to zero
China didn’t import any U.S. soybeans in September, a decrease from 1.7 million metric tons the year prior. This was the first time since November 2018 that China didn’t import any U.S. soybeans. It was the same reason then as it is now — China imposed retaliatory tariffs on the United States.
“It’s a big problem,” Sen. Majority Leader John Thune, R-S.D., told Straight Arrow News.
Members of Congress who represent those farmers are not happy that the tariffs are hurting their bottom line.
“It’s discouraging to me to see the administration give billions to Argentina, which is now taking that business away from American farmers, when we need to support our farmers and make sure they can export their products,” Sen. Adam Schiff, D-Calif., told SAN.
Argentina is expected to produce around 50 million metric tons of soybeans in its 2024/2025 growing season, according to data from the U.S. Department of Agriculture (USDA). That’s much less than Brazil. South America’s primary soybean producer is forecast to harvest a record 177 million tons in the same time period.
“Our farmers are in real trouble,” Sen. Jim Justice, R-W.V., told SAN. “If you think for one second that our farmers are not critical minerals, we are really, really making a bad mistake.”
Why did the imports stop?
After President Donald Trump imposed his worldwide tariffs in April, China responded by imposing a 23% tariff on American soy products. According to Reuters, that increased the cost per bushel by about $2 on a product that’s hovering near $10 per bushel.
That rise made U.S. soybeans cost more than those from South America. So China stopped buying soybeans from the United States and increased purchases from South America, particularly Brazil.
Will Congress provide assistance?
When this happened in 2018, the government took money from the Commodity Credit Corporation to help farmers. This time around, Trump is considering using tariff revenue to provide relief, although no plans have been announced.
“I can tell you this situation scares the living hell out of soybean farmers in Illinois and across America,” Sen. Dick Durbin, D-Ill., told SAN. “To lose a major customer like this is not only a loss to our farmers, it’s a loss that’s going to be felt in future generations because of the unreliability of the American producers.”
There are 43,000 soybean farmers in Illinois, more than in any other state. Across the country, there are more than 500,000 soybean farmers in 30 states.
Congress hopes to take action this time, but a plan has not been released.
“I’d like to see an end to these on-again, off-again, tariff wars,” Schiff said. “The farmers I talked to are looking to export their products and sell their products. They’d much rather have that than financial relief from the federal government.”
There are billions of dollars at stake. In 2022, after a post-tariff war resurgence, the United States exported nearly $18 billion worth of soybeans to China.
“Let’s get them back to the business of being able to sell their products overseas,” Schiff added.
Soybeans are used to make food and oil, but primarily feed livestock and poultry, meaning that as soybean prices increase, so too do soybean-based products.
Tariff power
Sen. Chuck Grassley, R-Iowa, introduced the Trade Review Act in April alongside Sen. Maria Cantwell, D-Wash. The legislation would require Congress to approve all new tariffs imposed by the president within 60 days, otherwise they would automatically expire.
This concern is shared by other members of Congress.
“I think we’ve given to the president authority over tariffs,” Durbin said. “It goes way beyond what the law even allows.”
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Ella Rae Greene, Editor In Chief
