US farmers say Brazil still has edge in China's soybean market despite trade truce
By Tom Polansek
CHICAGO (Reuters) -A surprising tariff pause between Beijing and Washington will not help U.S. farmers gain soy sales in China without additional concessions, producers said, because top-supplier Brazil still has a competitive price advantage.
Under the truce announced on Monday, the U.S. will cut extra tariffs it imposed on Chinese imports to 30% from 145% for the next three months, while Chinese duties on U.S. imports will fall to 10% from 125%.
Soybean export premiums fell in Brazil on the de-escalation, reflecting expectations that China could buy more from the U.S.
But American farmers said the tariff pause isn't enough. Brazil, the biggest soy supplier to China, has ample supplies from a record harvest and its farmers do not face the Chinese tariff that U.S. competitors do. China, the world's largest crop importer, already sources roughly 70% of its soybean imports from Brazil.
"The tariff that remains in place for U.S. soy is far from inconsequential," said Caleb Ragland, a farmer in Magnolia, Kentucky, and president of the American Soybean Association.
"Products purchased from our competitors in Brazil and Argentina are not burdened with this extra cost."
While the U.S. in 2022/23 accounted for about 28% of China's soybean imports, it has been a critical market for U.S. farmers, representing more than half of U.S. soybean exports in the most recent marketing year.
President Donald Trump's trade war created an opportunity for Brazil. The country aims to export even more agricultural goods to China, including sorghum, pork and chicken, and seize market share, said Luis Rua, who oversees foreign trade for Brazil's Ministry of Agriculture.
"What they (China) will buy is what they barely need to get by," Dan Henebry, a corn and soy grower in Buffalo, Illinois, said. "If South America is short... they'll buy from us."
Chinese buyers have also avoided U.S. wheat and bought 400,000 to 500,000 metric tons from Australia and Canada in recent weeks, traders said.
U.S. farmers hope that China may buy American crops as part of trade negotiations with Washington. Some growers said they would make advance sales of their autumn corn and soy harvests if crop prices rise because of increased demand.
The pause is set to expire just before U.S. farmers begin harvesting soybeans and corn, an important time for exports. They planted fewer soybeans this spring than last year because the crop looked less profitable than corn.
The truce did little to address underlying issues that led to the dispute, including the U.S. trade deficit with China that has aggravated some farmers.
Beijing did not fulfill commitments to buy more U.S. agricultural products under a trade deal it struck with Trump during his first term in 2020.
"The situation was bad before we started and something needed to be done. The situation is still bad," said Ron Heck, a corn and soy farmer in Perry, Iowa.
At the time, China had slashed purchases of U.S. crops, prompting Trump's administration to pay farmers billions of dollars in aid.
"It doesn't appear that we solved anything after that turmoil," said Henebry. "We're right back at the baseball plate trying to see if we're going to hit a home run or strike out again."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
25 minutes ago
- Yahoo
Judge says Columbia University activist facing deportation should be freed
Supporters of Mahmoud Khalil rally outside the federal courthouse in Newark on March 28, 2025. (Reena Rose Sibayan for New Jersey Monitor) A federal judge ruled Wednesday that a Columbia University activist detained for partaking in pro-Palestinian protests cannot be held by the federal government over allegations that his presence in the United States undermines the nation's foreign policy interests. U.S. District Judge Michael Farbiarz issued the order Wednesday but gave federal prosecutors until Friday at 9:30 a.m. to ask the 3rd Circuit Court of Appeals to step in. It's unclear if the activist, Mahmoud Khalil, will be released Friday if the government does indeed appeal. 'This is the news we've been waiting over three months for. Mahmoud must be released immediately and safely returned home to New York to be with me and our newborn baby, Deen,' Noor Abdalla, Khalil's wife, said in a statement from the American Civil Liberties Union of New York. 'True justice would mean Mahmoud was never taken away from us in the first place, that no Palestinian father, from New York to Gaza, would have to endure the painful separation of prison walls like Mahmoud has.' If it stands, Farbiarz's ruling, which comes on the heels of a previous decision that said the government's push to deport Khalil was likely unconstitutional, could deal a blow to the Trump administration's efforts to deport dissidents. Khalil was arrested by immigration authorities in March and has been held in Louisiana since. He's fighting two cases to fend off his deportation — one in Louisiana and one in New Jersey, because he was being transferred through Elizabeth Detention Center when his attorneys first filed a petition for his release. U.S. Secretary of State Marco Rubio claimed Khalil supports terrorist group Hamas and called his presence in the country a national security risk. Rubio has cited a rarely used provision of the Immigration and Nationality Act of 1952 to justify Khalil's deportation. Farbiarz noted in his Wednesday ruling that the government could argue that Khalil would have been detained anyway because he inaccurately filled out his lawful permanent resident application, which can be a basis for removal under very rare circumstances. But that argument won't work, he said. 'Lawful permanent residents are virtually never detained pending removal for the sort of alleged omission' Khalil is accused of, the judge wrote in the 14-page filing. Khalil, whose wife and newborn son are American citizens, has not been charged with any crime. He was among the first university students who were picked up by immigration authorities targeting pro-Palestine activists. Some students who were detained under similar circumstances have been released but still face deportation. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
25 minutes ago
- Yahoo
Trump's DOGE efficiency agency says it slashes $25B in federal spending as rehiring begins
The Department of Government Efficiency (DOGE) announced on Wednesday it has decreased its annual non-defense federal obligations by an additional ~1.9% since last month. As of June 8th, annual non-defense federal obligations are down 22.4%, or ~$25B, as compared to 2024, DOGE announced on X. The cut marks an additional ~1.9% reduction from last month's figures, which were announced on May 8. Doge's Greatest Hits: Look Back At The Department's Most High-profile Cuts During Trump's First 100 Days "Cash outlays will follow as obligations come due," DOGE wrote in the post. "Our initiative to reduce wasteful spend, consistent with the DOGE Cost Efficiency Executive Order, continues to bear fruit." On May 14, DOGE announced the current year's non-defense federal obligations were down 20.5% as compared to 2024. Read On The Fox News App The announcement came minutes before Fox News Digital was first to report the Department of Health and Human Services (HHS) is rehiring more than 450 previously fired employees belonging to multiple divisions within the agency's Centers for Disease Control and Prevention (CDC). The rehired CDC employees came from the National Center for HIV, Viral Hepatitis, STD, and Tuberculosis Prevention; the National Center for Environmental Health; the Immediate Office of the Director, and the Global Health Center, according to an HHS official familiar with the matter. HHS Secretary Robert F. Kennedy Jr. told CBS News in April some personnel who were cut shouldn't have been. Doge Ends 108 'Wasteful' Contracts, Including For An 'Executive Transformational Leadership Training Program' "We're reinstating them, and that was always the plan," Kennedy said. "Part of the—at DOGE, we talked about this from the beginning, is we're going to do 80% cuts, but 20% of those are going to have to be reinstated, because we'll make mistakes." In addition to the HHS rehires, the Internal Revenue Service, Food and Drug Administration, State Department, and Department of Housing and Urban Development started rehiring employees let go during DOGE cuts, the Washington Post reported. Doge Takes A Chainsaw To Federal Spending With 7 Major Victories This Week: 'Got To Be Done' Another roadblock this week was a ruling from U.S. District Judge Denise Cote of the Southern District of New York, who ruled to restrict the agency's access to federal databases. The Trump administration previously said DOGE could not work effectively with the limitations, noting DOGE needed to access Social Security information to root out fraud. Fox News Digital's Alec Schemmel and Danielle Wallace contributed to this article source: Trump's DOGE efficiency agency says it slashes $25B in federal spending as rehiring begins
Yahoo
25 minutes ago
- Yahoo
Hegseth defends $961.6B Defense Department budget request
June 11 (UPI) -- The proposed Department of Defense budget puts "America first" while addressing Ukraine, the Indo-Pacific and the Middle East, Defense Secretary Pete Hegseth told the Senate Appropriations Committee on Wednesday. Hegseth and Joint Chiefs of Staff Chairman Gen. Dan Caine fielded questions during a more than 2-hour hearing regarding the proposed $961.6 billion DOD budget for the 2026 fiscal year. The Defense Department is improving pay, housing, healthcare and other services to improve the quality of life for military members and their families, Hegseth told committee members. "This budget puts America first and gives our warriors what they need," he said during his opening statement. The proposed budget request also would "end four years of chronic underinvestment in our military by the Biden administration," Hegseth added. Russia and the Ukraine war Sen. Mitch McConnell, R-Ky., opened the hearing with questions about the Ukraine War, including who is the aggressor and preferred outcomes. Hegseth said Russia is the aggressor and China would prefer to keep the conflict going as long as possible to distract from its moves in the Indo-Pacific region. Europe needs to do more to defend its territory against Russian aggression, Hegseth said, and the United States must remain strategic in its handling of the war while addressing matters in the Indo-Pacific region. Sen. Chris Coons, D-Del., cited ongoing Russian aggression against civilian targets in Ukraine as evidence that Russia has no intention of ending the war there. The 2026 budget request eliminates aid to Ukraine, while senators are working to impose more sanctions on Russia, Coons said. "What message do you think it sends" when Russia "attacks civilian centers in Ukraine and the United States does not send additional air defense and interceptors to Ukraine?" Coons asked. Hegseth said arms are still flowing to Ukraine, but other NATO allies are not doing enough to end the war. "You're not a real coalition, you're not a real defense alliance, unless you have real defense capability and real armies that can bring those to bear," Hegseth said. "That's a reality that Europe is waking up to quickly," he added, "and we're glad." Coons said the United States should not negotiate a cease-fire in Ukraine "at any cost" and instead should continue supporting Ukraine to achieve an enduring peace. "Putin will only stop when we stop him," Coons said. "The best way to stop him is through a stronger NATO." Chinese military threats and Hegseth's DOD leadership Sen. Susan Collins, R-Maine, said China has more than 400 warships and is rapidly expanding its fleet versus 293 ships for the United States. She asked why the Defense Department only seeks funding to build two submarines and an ocean surveillance ship, plus some destroyers. Hegseth said the 2026 budget request reflects a 13% increase for investing in national defense over the current fiscal year. Sen. Patty Murray, D-Wash., then questioned Hegseth's leadership. "I am repeatedly hearing that your policy and personnel changes at the Pentagon are only undermining [and] not strengthening our military's preparedness to protect our country," Murray said. She accused Hegseth of using the military to police areas in the United States, including sending the National Guard and Marines to California to use against "peaceful protesters." Murray then asked Hegseth if the Defense Department would continue to fire shipbuilders, which he denied it has done. "We are investing historically in our shipbuilding defense industrial base and workforce and ships in this budget," Hegseth said. Murray said the Navy is firing shipbuilder staff in the state of Washington and accused it of asking welders if they ever donated to the Democratic Party. Hegseth said no welders are subject to litmus tests to work on naval projects and denied that political questions are asked. Iranian, Russian, Chinese and North Korean coalition Sen. Lindsey Graham, R-S.C., asked Hegseth and Caine if the world is underestimating Iran's intent to "kill all the Jews," including using a nuclear weapon against Israel if Iran had one. Caine said Iran would use one to pressure Israel but doesn't know if Iran would use it to "wipe out Israel." Hegseth said a radical cleric in Iran would use one to wipe out Israel. "They're going to use a nuclear weapon if they get it," Graham said. He also asked if China intends to "take Taiwan by force if necessary." Hegseth said the DOD doesn't know that China has made the decision to do so. Caine suggested China might use military force against Taiwan, and the United States needs to prepare for it. Coons said China, Russia, North Korea and Iran are aligned and pose the greatest threat to world peace since the Cold War. He cited Ukraine as an example of the future of warfare, but said the Department of Defense is "internally divided" and operating on a continuing resolution for the first time. The current state within the Defense Department "cannot continue," Coons added. Next-generation fighter and collaborative drones are planned The Defense Department also wants to spend $4 billion during the 2026 fiscal year to develop the F-47 fighter and "collaborative combat" drone aircraft, according to DefenseScoop. The $4 billion request is just part of the 2026 budget request, but the amount of the entire proposed budget has not been released. The Air Force wants to spend $3.5 billion on the F-47 fighter project, which would give it a fighter capable of exceeding Mach 2 with a range of more than 1,000 nautical miles. The current F-22 and F-35A fighter jets have top speeds of greater than Mach 2 and Mach 1.6 and ranges of 590 and 670 nautical miles, respectively. The Air Force wants to buy up to 185 F-47 fighters during the program's duration. The Air Force's Collaborative Combat Aircraft program would promote the development of next-generation drone aircraft that are capable of flying with the manned F-47 and other next-generation fighters.
