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Effects of Ag Tariffs Ripple Beyond Exports

November 6, 2018

Recent news articles demonstrate that tariffs on U.S. agricultural commodities are having an impact not only on the quantity of U.S. goods exported to China, but also the flow of some agricultural products within the U.S., and 2019 acreage allocation decisions by farmers. Meanwhile, a recent Wall Street Journal article reported that, “President Trump said the U.S. is getting much closer to a trade deal with China, a sign of optimism ahead of the Group of 20 leaders summit in Argentina later this month.”

Beyond Export Quantities, Tariffs Impacting U.S. Commodity Flows and Acreage Decisions

Reuters writer Dominique Patton reported late last week that, “China’s purchases of Brazilian soybeans in September jumped 28 percent from the prior year, data from the General Administration of Customs showed on Thursday, as buyers stocked up ahead of an expected shortfall in the fourth quarter.

“This is the first time that China has provided data on the country of origin for its commodity imports since the month of March.

China typically buys most of its soybeans in the fourth quarter from the United States but has sharply curbed its purchases of American beans amid an ongoing trade war.

The article noted that, “Chinese buyers imported 7.59 million tonnes of Brazilian soybeans in September, up from 5.94 million tonnes a year ago, according to data released on Thursday.

“Brazil accounted for 95 percent of the total 8.01 million tonnes imported in September, compared with 73 percent at the same time last year.”

Continue reading this article at Farm Policy News.