China is the world’s largest importer of American soybeans
This week’s new top economic adviser of U.S. President Larry Kudlow tried to calm wall street’s thesis that what happens now in relations between Washington and Beijing is not a trade war, and there is reason to expect that all over the comprehensive negotiations, all disputes in trade will be settled and trade barriers “on both sides will decrease.”
Responding on Wednesday to the journalists ‘ question about whether there is a chance that the U.S. duties on Chinese products will not come into force, Kudlow hinted that such a scenario is indeed possible. But first and foremost he believes that the use of the term “trade war” at the moment, inappropriate.
“We are not talking about trade wars, we are talking about compliance with the law and traditions of free trade and prevent violations. We’re not talking about war,” said Kudlow.
However, American farmers do not hide their concerns about the transition authorities of the two leading economies in the world from rhetoric to concrete restrictive actions. First and foremost, they are concerned that China’s plans to impose a 25 percent import tariff, the import of American soybeans in response to a unilateral increase of tariffs by the US. China is the largest importer of soybeans from the United States, annually buying soybeans at $ 14 billion. Almost a third of total production, so countermeasures of China will surely have a big impact on producers of soybeans in the United States.
“I grow soybeans in the amount of approximately $ 100,000 per year, so if I lose 20%, I lose $ 20,000, and it is real money. I’m trying to live in America in the 60 – 70 thousand dollars a year. And I can’t afford to lose 20 000. Inflation and rising health care costs, increase my cost of living, says farmer John, Kifner. My revenues are down for the fourth or even the fifth year in a row, and because of this, they can decline even further. My wife will not be able to afford dining out and maybe we won’t celebrate Christmas.”
If last year the farmer John Kifner from Illinois took a soy of more than 130 hectares of arable land, but this year he intends to reduce the amount of plantations, since they could not afford the risk of loss due to the lower prices for soybeans. John says that in his state he is not the only farmer faced with the dilemma of whether to sow or not to sow.
Major players in the us market is also already bear the loss. On the eve of the company’s shares of Boeing fell 6 percent after reporting that the aircraft produced in the United States, also may be assessed additional fees.