American Soybean Association urges President Trump to prioritise soyabeans in ongoing China trade talks

Following the extension of the deadline on trade talks between the USA and China to 10 November the ASA – which represents over 500,000 soyabean farmers – called for the removal of Chinese tariffs on US soyabeans and commitments for future purchases.

As well as its letter to the White House on 19 August outlining its concerns, the association also released a white paper outlining the financial consequences of losing long-term market share in China, the 20 August World Grain report said.

Historically, China has imported more than 60% of the world’s soyabean supplies, with the USA once its top source.

Retaliatory tariffs now made US soyabeans 20% more expensive than South American supplies, the ASA said, and China had turned to Brazil, which had expanded production to meet demand.

With the US harvest approaching, the ASA letter noted that China had not purchased any US soyabeans for the months ahead, creating urgency for a trade agreement.

“Soyabean farmers are under extreme financial stress. Prices continue to drop and, at the same time, our farmers are paying significantly more for inputs and equipment. US soybean farmers cannot survive a prolonged trade dispute with our largest customer,” ASA president and soyabean farmer Caleb Ragland was quoted as saying.

According to the ASA white paper, in the seven years leading up to the 2018 US-China trade war, an average of 28% of US soyabean production was exported to China, with a peak of 31% recorded in 2020/21 following the Phase One Trade Agreement.

During the seven years preceding the trade war, US soyabean exports to China accounted for an average of 60% of total US soyabean exports.

In 2023/24, the USA shipped around 25M tonnes of soyabeans to China while just 4.9M tonnes of US soyabeans were exported to the European Union (EU), the ASA said.

In its 12 August Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports, the US Department of Agriculture (USDA) lowered its 2025 US soyabean production forecast to 4.292bn bushels, down 43M bushels – or 1% – from 4.335bn bushels as the July trend-line forecast and down 74M bushels – or 1.7% – from 4.366bn bushels in 2024.

In 2023/24, China purchased 54% of US soyabeans, worth US$13.2bn, according to the ASA.

“Every day without an agreement further erodes US farmers’ market share in China,” Ragland said. “We strongly urge the administration to secure a deal that reopens this vital market for US soyabeans.”

Tags: China, exports, Brazil, US, Production, demand, soyabeans, tariffs, trade talks