Business· Commodity

Chinese imports of US soybean and pork produce fall by 55.3% as trade war bites

minutes 2019/06/26 06:01:18
soybeans; pork; US imports

Jun 26, 2019 (China Knowledge) - China’s imports of agricultural produce from the United States have plunged this year with both soybean and pork imports falling by 55.3% during the first 5 months of this year.

Beijing is thought to be using its reduced orders of US agricultural products as a negotiating tool during trade talks in Japan later this week when Presidents Xi Jinping and Donald Trump are scheduled to meet.

According to the US Department of Agriculture, soybeans are the leading US export to China with China bound exports accounting for 60% of its soybean output in 2018 and 20% of its total soybean exports this year up to May.

During the first 5 months of this year, the US only sent 6.9 million tons of soybeans to China, 20 million tons lower compared to the same period last year. Chinese policymakers are now warning that the US could potentially lose the Chinese agricultural market for good should it choose to continue with its tariff campaign.

To make up for the fall in US imports, China is now turning towards Brazil, importing 66.1 million tons of soybeans from the South American country last year which accounting for 75% of its total imports.

In response to the addition USD 200 billion worth of tariffs the US had imposed on Chinese goods in May, China had placed tariffs on USD 60 billion worth of American goods which are expected to affect about USD 3 billion worth of agricultural products.

Since April 2018, more than 1,000 US agricultural products worth USD 22.6 billion have been affected by tariffs stemming from the trade war.

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