Trade tensions between the United States and China have been at an all-time high lately. The two powerhouse countries have recently threatened to impose tariffs on thousands of imported goods from each other’s country. On Thursday and Friday, officials from both countries plan to meet to try and come to a resolution, but China may already be looking elsewhere for their goods.
In a recent Bloomberg report, China seems no longer interested in buying soybeans — at least from the U.S.
Soren Schroder, who is CEO of the world’s largest oilseeds processor, explained which countries could be looking to gain a significant trade partner with the U.S. and China at odds. “Whatever they’re buying is non-U.S.,” Schroder said. “They’re buying beans in Canada, in Brazil, mostly Brazil, but very deliberately not buying anything from the U.S.”
There has been a growing concern as to what will happen to all the goods that we use on a daily basis that are imported from China. The bickering over trade began after President Trump threatened to impose a tariff on over $50 billion worth of Chinese goods, CNBC reported.
With the two countries at odds, China canceled their order for 62,690 metric tons of soybeans produced in the U.S. With prices for US-based soybeans in a free fall right now, Forbes reported soybeans fell by 1 percent on the market.
To mitigate the growing concern, Treasury Secretary Steven Munchin announced that he will be in Beijing this Thursday and Friday to speak with Chinese officials about tariffs. If tariffs are implemented, it will be a major economical blow to both countries.
Both countries will need new sources for goods that their citizens can’t live without, and both will also likely target certain goods that they know the other’s populace will demand.
According to Barron’s, a publication that looked at what products could be targeted by each country, it seems that China would most likely target the import of US soybeans, civilian aircrafts and vehicles.
Hopefully, this won’t come to fruition. But if it does, get ready to pay a whole lot more for your imports.