Trump urges China to buy more U.S. soybeans amid shortage
Aug. 11 (UPI) -- President Donald Trump urged China to increase its purchase of American Soybeans fourfold.
"China is worried about its shortage of soybeans. Our great farmers produce the most robust soybeans," Trump posted on Truth Social late Sunday. "I hope China will quickly quadruple its soybean orders. This is also a way of substantially reducing China's trade deficit with the USA. Rapid service will be provided. Thank you President XI [Jinping]."
The push comes just as American soybean farmers prepare for harvest, which will boost supplies. China is the largest purchaser of American soybeans, buying about 20% of them from the United States. It bought $12.6 billion in soybeans in 2024.
But U.S. government data show as of late July that China hasn't booked any cargoes for the upcoming season as tensions flare.
After Trump's post, soybean futures in Chicago jumped as much as 2.8%, the biggest single-day gain in four months, and traded 2.3% higher as of 5:15 a.m. CDT. Corn and wheat also rose.
A key issue between the two sides is agriculture. China has begun buying crops from South America and others. China agreed to increase purchases of agricultural goods during Trump's first term but fell short of targets.
A tariff truce between the United States and China will expire Tuesday, but leaders from both countries have met recently to discuss an extension.
Earlier this year, Trump put a 145% tariff on China. China responded with a 125% tariff on American goods. The two sides ultimately agreed to bring those down. Right now, the tariff is set at 55%.
"The move to buy Argentina soybean meal is just a temporary fix," Hanver Li, chief analyst for China-based Shanghai JC Intelligence Co., told Yahoo Finance. "If the China-U.S. talks go well, it wouldn't be a long-term trade pattern."
Analysts surveyed by Bloomberg expect the U.S. Department of Agriculture to boost its outlook for the domestic harvest in a report due Tuesday.
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