“The idea in which we’re the only game in town, in addition to these partners have no choice nevertheless to purchase through the U.S. will be flatly wrong,” said John Heisdorffer, a farmer through Iowa in addition to president of the American Soybean Association. “Our competition in Brazil in addition to Argentina will be eager to capitalize on whatever openings these tariffs create for them in markets like China in addition to elsewhere.”
The U.N. Food in addition to Agriculture Organization estimates Brazil will overtake the United States as the entire world’s largest soybean producer inside the coming decade. Together, the U.S. in addition to Brazil represent about 80 percent of the global exports of soybeans.
“Soybeans will be certainly an area where we do a lot of business with China, in addition to I think they have certainly indicated in which they are investigating looking into soybeans as a potential retaliation,'” said Joseph Glauber, a former USDA chief economist in addition to right now a senior research fellow at the International Food Policy Research Institute in Washington.
Then again, Glauber said, the flip side of retaliations are they could inflict pain on China, too. Any action by Beijing might have repercussions for China’s importers, crushers in addition to livestock farmers who rely on the soy protein.
“I’m sure there’s a lot of concern in China over the potential loss of protein meal coming in through the U.S.,” he said.