Industry News: Trump Plans to Raise Tariffs on Chinese Imports Again; U.S.-China Trade Dispute Impacts Global Agriculture

Release Date:

2019-05-13

U.S. President Trump has recently sought to further raise import tariffs on Chinese goods. This could be another strategy aimed at pressuring the Chinese government to swiftly reach a trade agreement, thereby narrowing the U.S.-China trade deficit. If this approach backfires, the agricultural sector could bear a particularly heavy burden. Dr. Bob Fairclough, an expert with the Kleffmann Group and Chief Advisor at AgriGlobe, offers a clear and concise assessment of the market situation: 1. What would be the impact on U.S. agriculture if the United States raised tariffs on Chinese imports? U.S. farmers would first face challenges on two fronts. Right here in the United States…

U.S. President Trump has recently sought to further raise tariffs on Chinese imports. This could be another tactic aimed at pressuring the Chinese government to reach a trade agreement more quickly, thereby narrowing the U.S.-China trade deficit. Should this strategy backfire, the agricultural sector could bear a particularly heavy burden.

Dr. Bob Fairclough, an expert at the Kleffmann Group and Chief Consultant at AgriGlobe, offered a straightforward assessment of the market situation:

1. If the United States raises import tariffs on Chinese goods, what impact will this have on U.S. agriculture?

U.S. farmers will first face headwinds on two fronts. Just as the U.S. Corn Belt is beginning to feel the effects of drought and growers are preparing to plant, they may now be forced to reduce the acreage devoted to soybeans. In a typical marketing year, China accounts for a substantial share of U.S. soybean exports—60% of the total in 2017—and with this key export market once again under threat, U.S. farmers are likely to think twice before expanding soybean acreage. Even before this development, the situation was far from smooth: despite China’s renewed commitments to purchase U.S. soybeans, shipment volumes have been painfully slow. Whether or not this scenario unfolds, U.S. farmers are expected to favor corn over soybeans; however, it remains uncertain whether this shift will result in more planting area than currently projected. The second blow to U.S. farmers will come in the form of sharply higher prices for crop protection products, as the additional import tariffs imposed on all raw materials, active‑ingredient intermediates, and finished crop‑protection formulations originating in China are passed on to producers.

2. What impact will this have on Chinese agriculture?

Like U.S. growers, Chinese farmers will be affected on two fronts. China’s “Blue Sky Plan,” implemented since 2018, has driven up the prices of crop protection products and led to shortages of certain inputs. Tariffs imposed on exports to the United States will only exacerbate this trend. More importantly, in recent years China has relied heavily on U.S. soybean imports; an escalation of the trade war will place additional pressure on domestic producers. From another perspective, however, this situation also presents an opportunity. While China may not be the optimal location for soybean cultivation—certainly not in terms of efficiency—this shift in focus will impose further strain on producers of staple crops such as rice, cereals, and corn. Meanwhile, the outbreak of African swine fever reduced China’s pig herd by roughly 20% in 2018/19. Although this helped ease last year’s supply pressures, once pig numbers rebound, a shortage of feed-grade soybeans is likely to emerge—and with it, China’s growing demand for pork will resurface.

3. What impact does it have on global agriculture?

The patterns of trade are set to undergo significant changes. China continues to import U.S. soybeans, but now channels them through Argentina as finished soybean oil, which in turn puts pressure on Argentine farmers. Meanwhile, the European Union is facing a surge of “dumped” soybean oil imports, further straining EU rapeseed producers already under duress. As the United States seeks new markets such as Pakistan, this could exert additional pressure on India–U.S. relations and on India’s “Make in India” policy. In Russia’s Far East, soybean growers—already enjoying robust growth—are reaping extra benefits; however, this may, in turn, affect wheat producers in core growing regions, curtailing export potential and creating renewed opportunities for French wheat in the global market. The list of such developments is endless.

Source: AgroPages (World Agrochemical Network)

Tags:

The U.S.-China trade war has officially begun, yet China’s agricultural sector is poised to reap significant benefits!

Central Environmental Inspection: In Shandong, numerous chemical projects were built in violation of regulations, and rectification efforts have been selective and subject to loopholes.

More information

The National Agricultural Technology Extension Center has issued guidelines on “one spray, three protections” for wheat to address the heightened risk of recurrence of diseases such as Fusarium head blight, stripe rust, and aphids.

2026-04-10

The petrochemical and chemical industries comprise more than 27,000 large-scale enterprises—efforts to upgrade and retrofit aging facilities are being further intensified.

2026-04-06

In 2026, corn borer, cotton bollworm, and ear rot—among other corn pests and diseases—are expected to occur at a relatively severe level. The National Agricultural Technology Center has issued a control plan!

2026-04-02

Address: