Latest news with #CalebRagland
South China Morning Post
14-05-2025
- Business
- South China Morning Post
Lower tariffs remain too costly for soybeans and other US sectors, Congress hears
The costs of broad-based tariffs on Chinese imports remain too high even if the tariff reduction deal between Washington and Beijing lasts beyond 90 days, the head of a soybean industry group told US senators on Wednesday. After weekend talks in Switzerland, the two nations agreed to reduce tariffs temporarily until they reach a more substantive deal, with US tariffs on Chinese imports lowered to 30 per cent, from 145 per cent, and Chinese tariffs on US imports cut to 10 per cent, from 125 per cent. 'While this reduction is a step in the right direction, US soybeans are still facing a duty into our largest export market nearly equal to the height of the 2018 trade war,' Caleb Ragland, president of the American Soybean Association, told a hearing of the Senate Finance Committee. According to Ragland, US soybeans exported to China now face levies of 34 per cent, reflecting Beijing's retaliatory duties, the most favoured nation rate, and China's value added tax. While US soybean farmers have searched for years for alternatives to the Chinese market, Ragland said it could not be completely replaced given the 'sheer volume' of its demand. The US sells more soybeans to China, by value, than any other single product, even after President Donald Trump, then in his first term, launched his first trade war against the country in 2018, which drastically reduced US soybean exports.
Reuters
13-05-2025
- Business
- Reuters
US farmers say Brazil still has edge in China's soybean market despite trade truce
CHICAGO, May 13 (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."
