Chinese Tariffs on U.S. Soybeans Will Cause Global Upheaval
CBJ — Canada’s soybean producers believe China’s expanded list of tariffs to be applied on U.S. products will cause global disruptions and lots of uncertainty.
China retaliated against U.S. plans to apply tariffs on 106 imports by issuing a $50-billion list of U.S. goods including soybeans, whisky, beef, industrial chemicals and small aircraft for possible tariff hikes in the escalating dispute.
Soy Canada executive director Ron Davidson says the 25% levy on U.S. goods could create some opportunities for Canadian exporters, but also force Canada to defend sales to 69 other countries.
Canada sold nearly five million tonnes of soybeans valued at $2.7 billion to China last year.
It is the country’s largest export market, but Canada is a small player compared with global leaders like Brazil, the United States and Argentina.
Brazil supplied about half of the nearly 100 million tonnes of soybean imported by China last year. The U.S. shipped 33 million tonnes.
Undeterred, the U.S. seems keen on having an all-out trade war with China. America is exceedingly annoyed by what it perceives as Chinese theft of technological intellectual properties and has already indicated it will ratchet up the trade war even further — and specifically hit core Chinese industries worth as much as $150 billion to that country’s exporting economy.