Soybeans: China and European Union Corps against Trump’s introductory wars? | Trade War News

European Union countries are scheduled to agree to a set of reprisals on the United States on Wednesday in response to President Donald Trump Comprehensive definitions On the trade partners in America.

TAT expected nipples also come with China’s revenge on Trump’s tariff this week. Revealing The tariff spit It has global markets that destabilize the stability and shares that were seen in all fields.

Trump’s latest tariff put a 20 percent tax on all European Union commodities. The customs tariff rate is 104 percent for Chinese goods.

European Union actions will target American aluminum and steel products, as well as American agricultural imports – the key between them soybeans.

One of the largest imports in America in the world, can soy -heel beans prove Achilles in Washington used by commercial partners, including the European Union and China, to respond effectively?

Here is what you should know about what the soybean commercial warfare might mean – and why it could be a big problem for the United States, economically and politically:

Why soybeans are very important for the United States?

Soy, in the form of full beans, is animal feed, or oil, the cornerstone of the American agricultural industry and represents one of the largest agricultural revenue in America.

It represents about 0.6 percent of GDP. The United States has More than 500,000 soybeans producersAccording to the Ministry of Agriculture for Agriculture. This includes at least 223,000 full -time jobs with the support of the soybean industry, according to a report issued in 2023 by the National Olive Seeds Association and the United Soya Council.

The value of the industry is $ 124 billion in the United States – this is more than the full economy of Kenya or Bulgaria.

Although domestic demand for soybeans in the United States is growing, exports are the basis for the success of the crop. The United States is currently the second largest source of soybeans in the world, selling more than half its return to about 80 countries.

Who exports the United States soybeans?

Soybeans contributed to more than $ 27 billion of US annual exports in 2023, according to the data of the Economic Summary Observatory (OEC), a platform depicting open source data.

This is more than any other agricultural export.

ChinaWhich imports $ 15 billion of US soybeans, to a large extent the most important market, followed by the European Union – especially Germany, Spain and the Netherlands, which buy about $ 2 billion of oil seeds.

However, both China and the European Union are now at the heart of a global reaction against Trump’s tariff. They were both in the “worst perpetrator” list of countries that a barrage hit by the high tariff announced by Trump last week. The list included the countries that Washington claimed to impose taxes on American goods unfairly in their countries.

Trump slapped the European Union by 20 percent, regardless of 25 percent of steel and aluminum, which is a major part of the mass exports to the United States.

China is now facing a 104 percent tariff for all its American exports as of Wednesday.

Will the European Union and China decrease the definitions of soybeans?

It seems that both entities target us soybeans, a soft place for Washington, taking into account the importance of their markets for American farmers.

The European Union promised to target American goods worth 26 billion euros (28 billion dollars) in retaliatory definitions.

While this customs tariff is expected to be applied in stages, one of the products in the European Union list is soybeans.

The mass will vote on an additional larva of up to 25 percent on a list of targeted goods on Wednesday, with no expectation of opposition. The first group of definitions will be applied from April 15.

Meanwhile, US soy exports to China, its largest market, are hitting. China had previously sharpened the American food products, as it slapped 15 percent on goods such as chicken, wheat and corn, with a 10 percent tax imposed on soybeans, meat and other farm exports.

On Saturday, China put an additional 34 percent on all American goods, which led to additional fees on soybeans, in particular, to 44 percent. A 50 percent increase in all American goods It will apply On Thursday, Beijing announced.

This means that American soybeans will now face 94 percent of the customs tariff in China.

Experts say China can bear the costs of gambling with soybeans because it has increased to Brazil for soy’s imports since 2017 when the first trade war began during Trump’s first administration.

US soy exports have decreased to China at the time since then, while Brazil now has more than half of the market share. In 2024, Brazil exported $ 36.6 billion to China, while the United States exported $ 12.1 billion of soybeans.

How do soy farmers interact?

https://x.com/asa_soybeans/status/1909613301564112985

American soy farmers urged Trump to remove the tariffs on China, the European Union and other markets such as Mexico. Most of them emphasized the importance of China for American farmers.

“China bought 52 percent of our exports (soybeans) in 2024,” said the chief economist at the American Soy Fall, Scott Gerat, told Agence France Presse. He added that given the size of its purchases, China cannot be easily replaced.

Some farmers say that many will not be able to withstand a long time if the trade continues, as their products will become very expensive so that it is not possible to compete in the global market.

“If this trade war continues until after autumn, you will see that farmers are running out of work,” he told the David Walton soy farmers ABC.

What could be political effects?

The war on soy, and indeed, to clarify the sacrificed tariff can be profound political effects.

To date, Trump has issued policies as executive decrees, and has deprived Congress of the right to reach this issue.

But a member of the Republican Congress without Bacon, Republican Senator Chuck Grassley and Democratic Senator Maria Kaneuel are preparing to submit legislation that forces Trump to notify Congress with any new tariff, with its application of the approval of the House of Representatives, according to its reports by the United States Political Publications and the Chios. However, the chances of the slim law, because the Republicans dominate the House of Representatives and the Senate.

However, whatever happens in Congress, the political consequences may be perceived outside the Capitol Hill as well.

Almost all US soybeans exports to the European Union come from Louisiana alone, and it is the mandate of the Republican Parliament Mike Johnson. However, the politician spoke in favor of the high tariff.

In a press release last week, Johnson said that the Americans should “trust the president’s instinct in the economy.”

“It might be rocky at the beginning, but I think it will eventually be logical to all Americans, it will help all Americans,” he said.