China purchased a comparatively small amount of U.S. soybeans several days ago after promising to boycott U.S. farm products amid deteriorating trade negotiations with the Trump administration.
Beijing reached agreements last week to buy 9,589 metric tons of American soybeans for the current marketing year and 66,000 metric tons for the following year, which starts September 1, according to data from the U.S. Department of Agriculture released Thursday.
An August 5 statement from China’s Ministry of Commerce said Chinese companies would boycott American farm products in response to the Trump administration’s heavy tariffs on Chinese products. In May, the White House upped tariffs on $200 billion worth of Chinese imports from 10 percent to 25 percent, claiming Beijing had reneged on the previously agreed terms of a trade deal. The U.S. also currently has a 25 percent tariff on $50 billion worth of Chinese high-tech products.
In response, China has slapped 25 percent tariffs on tens of billions in U.S. goods, including cars, planes, propane, soybeans, beef, and whiskey. The duties caused a steep drop in American farm exports, and the Trump administration has since compensated farmers up to $28 billions for their losses.
Despite apparently breaking its boycott, China, which is the world’s largest soybean importer, is still not purchasing anywhere near as many American soybeans as it has in the past. Last year, American sales of soybeans to China dropped 74 percent as Beijing gave its business to South America.
President Trump has long complained about China’s trade practices, accusing the country of contributing heavily to the U.S. trade deficit as well as stealing intellectual property from American companies.
“Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!” the president wrote in a tweet around the time of China’s retaliatory tariffs.
The administration had said it planned to impose tariffs on another $300 billion in Chinese goods by September 1, but later said it would delay imposing them until December.
“Despite the U.S. decision to delay tariffs on some Chinese goods . . . if the United States rides roughshod over China’s opposition and imposes any new tariffs, China will be forced to adopt retaliatory actions,” Chinese Ministry of Commerce spokesman Gao Feng said Thursday.