China imports no US soybeans in September for first time in seven years

19 pointsposted 4 months ago
by belter

3 Comments

ZeroGravitas

4 months ago

Wow, I wonder what happened in November 2018 to cause the previous zero import situation?

Reuters doesn't feel it's worth mentioning so probably just random fluctuations in the market or a previous Trump trade war, something like that of no relevance to the current situation and so best ignored.

Here's an economics paper summarising and putting dollar values on the fallout that time:

https://www.sciencedirect.com/science/article/abs/pii/S03069...

Estimating the market effect of a trade war: The case of soybean tariffs

* In 2018, China levied a 25% retaliatory tariff on U.S. soybean exports.

• That tariff led Chinese buyers to favor Brazilian soybeans.

• We estimate the tariff lowered U.S. prices at the Gulf by $0.74/bu on average for about five months.

• USDA’s trade aid payments for soybean damages summed to $3.70 for 2 bushels over two years.

•We project that USDA’s trade aid to soybean producers exceeded the tariff damage by about $5.4 billion.

more_corn

4 months ago

Who asked for this trade war by the way? I don’t recall anyone calling for one, literally ever.

jfengel

4 months ago

It was a significant part of the last Presidential campaign. It was touted as a way to close the deficit, and making other countries pay for it.

So I'd say that 77 million people were calling for a trade war. And here we are, getting what we asked for.