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China’s 10 percent tariff continues to weigh on U.S. soybean trade

The president of the Missouri Soybean Association says he’s not surprised to see China continue with its 10 percent tariff on U.S. soybeans after last week’s meeting.

“There’s lots of polarizing issues that need to be hammered out before we can expect to see the 10 percent tariff come off the soybeans,” Cody Brock tells Brownfield.

A new “30-for-30” trade framework identifies about $30 billion in goods from the U.S. and China that could receive more favorable tariff treatment. The U.S. list includes several ag products, but not soybeans. Brock says it’s frustrating, and a more stable trading relationship is needed.

“Let’s try to work together on some things, maybe more easily than we have before,” he says. “Get this agreement moving forward and let’s try to work on another agreement the next few months. That would help, too.”

Brock says he’s glad to see China buying U.S. soybeans, and soybean prices have strengthened because of that.

However, American Soybean Association President Scott Metzger, who farms in Kentucky, tells Brownfield the 10 percent tariffs that remain give South America a competitive advantage in China.

“It makes it easier for them to switch going down there to buying soybeans, because they don’t have that tariff,” says Metzger.

In a statement, ASA says it’s encouraged more U.S.-China talks are planned before the trade truce expires in January and wants negotiators to address the remaining soybean tariff.

Hear Brownfield’s interview with Cody Brock.

Hear Brownfield’s interview with Scott Metzger.