If China ran the Oprah Winfrey show, tariffs would be on the “Favorite Things” episode. You get a tariff and you get a tariff! Everybody gets a tariff! Just as the audience can get wild, so did the grain markets’ reaction on Wednesday. The Iowa Soybean Association urges growers to remain calm.
China on Wednesday announced plans to impose additional tariffs on U.S. products, such as soybeans. We all know how the story unfolded. Tariffs were announced, markets took a 40 to 50 cent dive, China bought a bunch of soybeans at discounted prices and then skipped back home singing “Tra-la-la la-la.”
As we look ahead, the markets have had time to digest the information, calm down and even rally. Iowa Soybean Association CEO Kirk Leeds reminds us that these are just “proposed” tariffs. Nothing is in place yet.
Leeds says Iowa growers realize there are certainly some unfair trade issues with China. Farmers realize they are not the only players in a vast American economy.
Leeds says these tariffs weren’t unexpected, because American agriculture is a prime target and China knows how to play the political game
If any tariffs are implemented, it still takes weeks, if not months for them to take effect. This means there is still plenty of time for the United States and China to work out their differences.
China is one of the biggest buyers of U.S. soy products. The iowa Soybean Association sent along this graphic for you to look at China by the numbers