Investing.com – In slapping a 25% tariff on U.S. soybeans, Beijing is hitting one of the United States biggest exporter industries and one highly reliant on the Chinese market.
Soybeans represent 40% of the $34 billion in exports affected by the recently imposed tariffs.
China is far the largest importer of U.S. soybeans. In 2017, it absorbed 60% of the $21.6 billion in soybeans sent abroad.
China has been an important growth market for U.S. producers. Exports have surged from $414 million in 1996 to $12 billion in 2017.
In recent years, however, the U.S. has lost market share to Brazil, which is by far the No 1 supplier.
Nevertheless, a Purdue University study estimates the tariff could reduce U.S. soybean exports to China by 65%.
The American Soybean Association says the tariff will mean “serous damage to U.S. farmers.”
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Source: Investing.com