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ASA remains concerned about trade escalations

The head of the American Soybean Association says the escalation of trade tensions with China are concerning.

Steve Censky says an announcement from President Trump that he intended to cancel his upcoming meeting with China’s president came as a surprise.  “Just last week, the President posted on Truth Social that that was his intent, was to get a deal on soybeans with President Xi and China at the end of the month when they meet.”

In addition to canceling the meeting, President Trump also threatened to impose “massive” new tariffs on China in response to Beijing’s announcement that it would restrict exports of rare earth minerals.

Censky says the latest announcement is a setback in resuming trade between the two countries and underscores the importance of diversifying export markets for soybeans.

He tells Brownfield China historically imports more U.S. soybeans than the rest of the world combined.  “We desperately need China.  No market can replace China, but we also have opportunities to try to increase exports to a lot of markets around the globe.”

Censky says increasing domestic demand also has to be part of the solution, which means the Trump administration needs to finalize its renewable volume obligations.  “They proposed really substantial increases in, about a 67% increase in bio-based diesel use, 50% RIN discount on imported feedstock so we wouldn’t have Chinese UCO (used cooking oil) or Brazilian beef tallow displacing soybean oil in those markets.”

He says the administration also needs to fully reallocate any Small Refinery Exemptions.

Censky says trade wars are harmful for all of agriculture, and ASA remains optimistic negotiations can resume, and the trade relationship can be restored.