Another blow to Minnesota soybean farmers already feeling the effects of tariffs as China opts to buy more non-U.S. grown soybeans.
Minnesota Soybean Growers Association president Darin Johnson says China has turned to Argentina instead of the U.S.
"There was another 20 tenders that China bought from Argentina, you know, unfortunate timing through that," Johnson explains. "But that pushes China out, at least into probably December 1st, part of January, with not needing to purchase any soybeans from us."
Johnson told the WCCO Radio Morning News with Vineeta Sawkar that they're working to identify, establish, and strengthen markets outside of China, which purchases roughly 25% of total soybean production from the United States.
Governor Tim Walz visited a Fairbault grain farm on Wednesday to highlight how federal trade policies are impacting Minnesota's soybean farmers.
Walz says tariffs have resulted in billions of dollars in lost sales as China skips over the U.S. but adds there are ways for the state to help.
"It's really important right now that both we solve our trade issues as quickly as we can, but we also think about domestic markets for these products and making opportunities available," said the governor.
Trade war with China ramps up again
China is the top export market for U.S. soybeans purchasing over $12 billion worth of soybeans last year. 60% of Minnesota soybeans are sent overseas.
"Making sure that we're keeping relationships, having discussions in the background, and hoping that really we do end up with a good trade, long, good, long-lasting trade deals that are good for for both parties and good for Minnesota soybean growers and U.S. farmers," Johnson added.
China did not back down this week in a back-and-forth with the U.S. over trade, calling for U.S. President Donald Trump to withdraw his latest threat of a 100% tariff and other export control measures announced over the weekend.
In the latest escalation of the trade war between the two nations, Trump issued the tariff threat on all Chinese imports into the U.S. after China placed stricter restrictions Thursday on rare earths, a vital resource used in electronics.
The Chinese announcement was an apparent surprise to Trump, who called it an “out of the blue” move. While Trump did not withdraw the economic threat, he sounded more conciliatory than in the past, saying in a Truth Social post Sunday, “The U.S.A. wants to help China, not hurt it!!!”
China’s Ministry of Commerce issued a lengthy response Sunday saying the U.S. was “severely damaging the atmosphere of trade negotiations.”
“China urges the U.S. to promptly correct its erroneous practices,” Chinese Ministry of Foreign Affairs spokesman Lin Jian said Monday. “If the U.S. insists on going its own way, China will certainly take resolute measures to safeguard its legitimate rights and interests.”
Both nations have leveraged multiple dimensions of the trade relationship in the trade war, with actions ranging from U.S. restrictions on China’s ability to import advanced computer chips, China ending purchases of American soybeans and an exchange of tit-for-tat port fees.
Economic indicators show the retaliatory actions and uncertainty are impacting trade between the countries. Chinese trade data release Monday showed exports to the U.S. have fallen for six straight months, dropping 27% in September from the year before.