There is no point in such a move as it will harm the Chinese consumers”, said Terry Branstad, who is former Governor of Iowa, considered to be a major agricultural production area. “The Chinese will eventually understand that we need to work together on these issues, which are not the answer to the definition of countermove, and instead we need cooperation to address the problems that have existed for a long time”, added he.
It should be borne in mind that the possible limitation of imports of American soybeans into China through the introduction of high duties will be seen as a peak in the escalation of trade tensions between the two world economic powers. Such measures will seriously damage US producers, but at the same time will increase the cost of Chinese food producers and farmers. Last year, soy beans formed the largest US export of agricultural products in the direction of China, exceeding 12 billion USD.
Imposition of China duties on soybean import would cause an annual economic loss for the US between 1.7 billion USD and 3.3 billion USD. China buys nearly 60% of soy products that are traded globally, with over 30% of soybean imports coming from the United States. Chinese buyers mostly use soybeans to turn it into soy flour to feed cattle herds.
“China does not want to participate in a trade war. But if forced into a trade war, China has the energy and confidence to protect our interests”, says the statement of the Chinese Foreign Ministry.
Beijing’s measures come as a result of Trump’s decision to raise customs tariffs for some Chinese goods such as steel and aluminum.