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US-China tariff pause not enough to compete with Brazil in soybean market, American farmers say
Farmers in the U.S. will still struggle with soybean sales in China even though Washington and Beijing reached a truce in their tariff standoff, American producers said.
American farmers told Reuters on Tuesday that Brazil, the top soybean supplier, still holds a competitive price advantage despite the tariff pause between the U.S. and China.
“The tariff that remains in place for U.S. soy is far from inconsequential,” Kentucky farmer Caleb Ragland, who is president of the American Soybean Association, told the outlet. “Products purchased from our competitors in Brazil and Argentina are not burdened with this extra cost.”
On Monday, the U.S. and China announced a 90-day tariff pause. The U.S. will temporarily lower its tariffs on Chinese goods from 145% to 30%, and China will reduce its levies on American products from 125% to 10%.
Dan Henebry, a corn and soy grower in Buffalo, Illinois, told the outlet that China would only buy from the U.S. if its suppliers in South America come up short, lamenting that American farmers are back at square one.
“It doesn’t appear that we solved anything after that turmoil,” Henebry said. “We’re right back at the baseball plate trying to see if we’re going to hit a home run or strike out again.”
