Once a trade war weapon, US soybeans return to China’s shopping list
In a significant development following President Donald Trump’s meeting with Chinese leader Xi Jinping, China has agreed to resume its purchases of U.S. soybeans, a vital $30 billion sector within American agriculture. This decision marks a pivotal moment in the ongoing trade tensions between the two nations, which saw soybean exports become a political tool amid escalating tariffs. Previously, China had halted imports of U.S. soybeans in retaliation for Trump’s tariffs, leading to a shift in its sourcing to countries like Brazil and Argentina. This realignment not only highlighted the vulnerabilities of U.S. farmers to international diplomatic conflicts but also demonstrated how quickly global trade dynamics can change.
Treasury Secretary Scott Bessent announced that China will purchase 12 million metric tons of American soybeans during the current season and has committed to buying an additional 25 million tons annually over the next three years as part of a broader trade agreement. Additionally, several Southeast Asian nations are expected to purchase a combined 19 million tons of U.S. soybeans, although specific timelines for these purchases were not disclosed. Bessent expressed optimism for American soybean farmers, who have faced significant challenges due to previous trade disputes, stating that they are no longer being used as political pawns and should expect better prospects moving forward.
The implications of these developments are particularly critical for U.S. soybean farmers, whose livelihoods are deeply intertwined with international trade. Historically, prior to the trade conflict that began in 2018, China accounted for approximately 28% of U.S. soybean exports. However, this figure plummeted to just 11% during the height of the trade war, only to partially recover to 31% by 2021 amid pandemic-related demand. Farmers like Brad Arnold from Missouri have expressed the profound impact of China’s trade decisions on their businesses, emphasizing that while domestic uses for soybeans exist, they are insufficient to replace the significant demand from China. The recent agreement raises questions about the future of U.S.-China trade relations, with experts noting that China’s gradual decoupling from U.S. agricultural products had begun even before the current administration. As the situation unfolds, the intersection of diplomacy and agriculture remains a critical area of focus for both countries and their respective economies.
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On the heels of President
Donald Trump’s
meeting with Chinese leader Xi Jinping, Beijing has agreed to restart its purchases of U.S. soybeans, a $30 billion cornerstone of American agriculture that was once wielded as a weapon in the battle for global trade leverage.
Once a quiet export success story, America’s humble soybean became a political flashpoint after Beijing halted imports in retaliation for Trump’s tariffs on
Chinese
goods. China’s shift to suppliers in Brazil and Argentina exposed how quickly global trade flows can realign and how vulnerable U.S. farmers remain to diplomatic friction.
CHINA TRADE FREEZE SQUEEZES US SOYBEAN FARMERS AS COSTS CLIMB, PROFITS VANISH
Treasury Secretary
Scott Bessent
said Thursday that China will buy 12 million metric tons of American soybeans during the current season through January and has committed to buying another 25 million tons annually for the next three years as part of a larger trade deal.
In an
interview
with Fox Business’ “Mornings with Maria,” Bessent added that several Southeast Asian nations have also agreed to buy a combined 19 million tons of U.S. soybeans, though he did not specify a timeframe for those purchases.
“So our great soybean farmers, who the Chinese used as political pawns, that’s off the table, and they should prosper in the years to come,” Bessent said.
CHINA TRADE FREEZE SQUEEZES US SOYBEAN FARMERS AS COSTS CLIMB, PROFITS VANISH
What began as tit-for-tat posturing between the world’s two largest economies evolved into both a symbolic and economic gut punch for Trump’s rural base, whose livelihoods depend on the very trade ties now caught in the crossfire.
According to the American Soybean Association, the U.S. has traditionally served as China’s leading soybean source. Prior to the 2018 trade conflict, roughly 28% of U.S. soybean production was exported to China. Those
crop exports
fell sharply to 11% in 2018 and 2019, recovered to 31% by 2021 amid pandemic-era demand and eased back to 22% in 2024.
But some policy experts argue that
China’s
shift away from U.S. soybeans was already underway.
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“China was always going to reduce its reliance on the United States for food security,” Bryan Burack, a senior policy advisor for China and the Indo-Pacific at the Heritage Foundation told Fox News Digital. “China started signing purchase agreements with other countries for soybeans well before President Trump took office.”
He added that Beijing has “been decoupling from the U.S. for a long time.”
“Unfortunately, the only way for us to respond is to do the same, and that process is painful and excruciating,” Burack said.
AMERICAN SOYBEAN FARMERS FACE FINANCIAL CRISIS AS CHINA TRADE DISPUTE THREATENS LIVELIHOODS
But for farmers thousands of miles from Washington and Beijing, those policy shifts translate into shrinking markets and tighter margins.
“We rely on trade with other countries, specifically China, to buy our soybeans,” Brad Arnold, a multigenerational soybean farmer in southwestern Missouri, told FOX Business ahead of Trump’s bilateral meeting with Xi. He said China’s decision to boycott U.S. soybean purchases “has huge impacts on our business and our bottom line.”
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“There are domestic uses for soybeans, looking at renewable diesel, biodiesel specifically produced from soybeans,” Arnold said.
“In the grand scheme of things, that’s such a small percentage currently, you know it’s going to take a customer like China to buy beans to make a noticeable impact. You can’t take our No. 1 customer, shut them off and just overnight find a replacement.”
Whether China’s new purchases signal a genuine thaw in U.S.–China trade relations or just a temporary reprieve, the deal underscores how closely diplomacy and agriculture remain intertwined.
Fox Business’ Eric Revell contributed to this report.
Eric
Eric is a seasoned journalist covering US Politics news.
