ASA: Trade War Will Increase Damage to Farmers
The American Soybean Association says the recent decision by the Trump administration to impose ten percent tariffs on an additional $200 billion in Chinese imports—and China’s subsequent retaliation on $60 billion of U.S. products—deepens and prolongs the trade war between the two countries, posing even more adverse consequences for American soybean farmers.
ASA points out that since June, the price of U.S. soybeans at export terminals in New Orleans has dropped 20 percent, from $10.89 to $8.68 per bushel. Farm-gate prices have fallen even further. During the same period, the premium paid for Brazilian soybeans has increased from virtually zero to $2.18 per bushel, or $80 per metric ton.
ASA has urged the Administration to quickly end trade disputes, reconsider joining the Trans-Pacific Partnership, and has asked Congress to double funding for the Foreign Market Development and Market Access Programs for export promotion activities.