Soybeans Fall on Trump's China Tariff Threats Amid Trade War Concerns
Soybeans plunged in Chicago after US President Donald Trump renewed threats to impose tariffs on China, sparking fears of a full-fledged trade war between the world's largest economies. Wheat and corn prices also declined.
The decline reversed Monday's surge of over 3% in soybean prices, fueled by Trump's initial restraint from imposing immediate levies on China. The move had raised hopes of a more conciliatory approach from the new administration.
However, Trump asserted on Tuesday that his threat to impose tariffs on all Chinese imports remained on the table. Such a move could trigger retaliation from China, the world's largest soybean importer, hurting US farmers and potentially dampening global demand.
Trump has aggressively targeted Beijing on trade throughout his presidency, initiating a confrontation that has reshaped supply chains and the global economy. Chinese Vice Premier Ding Xuexiang stated that China would increase its imports, emphasizing that the country was not pursuing a "trade surplus."