Posted on 04/04/2018 6:20:49 AM PDT by Leaning Right
China will struggle to replace U.S. soybean supplies after implementing an additional 25 percent tariff on American shipments, likely inflicting severe financial pain on domestic companies, analysts and executives at feedmakers said.
*snip*
Soybeans are considered one of the most powerful weapons in Beijing’s trade arsenal because a drop in exports to China would hurt Iowa and other farm states that backed U.S. President Donald Trump
(Excerpt) Read more at reuters.com ...
China has a $100 billion trade surplus with America.
That who is going to blink first.
Anyone who has been following the markets these last few weeks knows the pain involved here. But I say let this play out. There are now structural trade imbalances with China that are now built in. It will take some effort to tear down these unfair trade practices with China ripping us off because now one before Trump wanted to rock the boat.
In the end, if we hold fast, China will have to give way and things will be properly rebalanced and more healthy.
If the U.S. stock market crashes, their stock market will crash even worse & they will then be dumping tons of $$$ to prop it up!
I don't think China is that stupid, this is just a bluff
I'm feeling a bit like Larry now.
So with less soybeans going to china the chinese people will go hungry and or spend more of their Yen on food stuffs. Hungry people are hard to govern.
We hear enough horror stories about china from the chinese people we know. There would be a change in government there if the people had the 2nd Amendment.
> this is just a bluff <
Could be. What I find interesting here is that China evidently does not understand what Trump is all about. They (the Chinese) are acting as if they are dealing with just another typical squishy Western leader.
Trump is different. He will call their bluff.
Fewer American soybeans from US producers means more from others in the world market. Then US soybeans will fill that gap.
It hurts those engaged in direct China-US trade, but nobody’s going to go without. There’s too may soybeans out there for that, and there will be a lot more this next year with US corn acres being switched to soybeans this spring.
There’s only one thing: companies like Cargill and ADM could divert all those soybeans to uses in the USA. Soybeans has a lot of industrial uses; companies making soap and detergent products like Proctor & Gamble would love to get their hands on all those soybeans.
BBC is all pro Chinese and pretty well calling Trump Evil and Crazy ,LOL
Is there a chance that the Chinese people have more money now and can absorb more Communist taxation on American goods? They are not and should not be considered as peasants anymore. I think if we put Princess Ivanka’s picture on everything we send to them,
This is going to be similar to Saudi Arabia’s failed attempt to manipulate the oil market.
China loses.
Try $500 Billion.
Brazil will cause they going to reap from this......
It worked pretty well for a few decades, before it failed.
It is going to be an interesting ride, but my money is on DJT.
The big soybean purchasors like ADM could buy from the US and co-mingle with soybeans from Brazil and Paraguay and who the hell would know the difference?
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