US soybean exports hit with 44% tariffs as trade war with China escalates
The new levies, set to take effect April 10, are part of China’s retaliatory measures following the White House’s sweeping April 2 announcement.
USA – More than half of US soybean exports now face a crippling 44% tariff, the result of escalating trade tensions between the United States and China, World Grains has reported.
The new levies, set to take effect April 10, are part of China’s retaliatory measures following the White House’s sweeping April 2 announcement imposing new tariffs on over 50 countries.
This includes a 54% combined tariff rate on Chinese goods since President Donald Trump first took office in January.
In response, China added a fresh 34% tariff on US goods, on top of earlier 10% and 15% tariffs on key agricultural products such as soybeans and wheat. According to Chinese trade officials, this brings the total tariff on US soybeans to 44%.
The tit-for-tat trade measures threaten to disrupt a vital export pipeline. In 2024, over half the value of US soybean exports, part of a $12.84 billion trade with China, was shipped to the world’s largest agricultural buyer.
With these new tariffs in place, US farmers face a significant blow, particularly as Brazil continues to dominate Chinese soybean imports.
“The China tariff news certainly is disappointing but not completely unexpected,” said Brian Harris, executive director of Global Risk Management.
“China will be using Brazil almost exclusively for the next several months. Any rally potential for soybean values will likely have to come from a US weather issue, especially since planted acres will be down substantially.”
Indeed, US soybean acreage is forecast to drop by 4.1% this year, with the USDA’s March 31 Prospective Plantings report showing 83.5 million acres projected to be sown in 2025.
Market reactions have been swift: soybean futures plunged over 5% following the White House announcement, with the CME Group’s May contract falling to US$9.75 per bushel on April 4. The November new-crop contract also experienced a similar decline.
Beyond soybeans
Beyond soybeans, China’s tariff escalation hits a wide swath of US agricultural exports.
Beginning April 10, tariffs ranging from 44% to 49% will impact US shipments of sorghum (US$1 billion in 2024 exports to China), wheat (US$482 million), corn (US$328 million), dairy (US$584 million), and poultry and meat (US$490 million).
These categories now face significant headwinds as China diverts purchases to alternative suppliers.
Of the top 10 destinations for US soybean exports, only Mexico, worth US$2.3 billion in 2024 sales, has been spared in the April 2 White House announcement. Thanks to protections under the United States-Mexico-Canada Agreement (USMCA), Mexico remains exempt from the new tariff wave.
Soybean industry leaders are calling for urgent diplomatic engagement to prevent long-term damage.
“We are hoping that from obstacles can come opportunity and that the administration will swiftly work with the affected countries to create new market access opportunities,” said Caleb Ragland, president of the American Soybean Association.
He added that the US must pursue a Phase 2 Trade Agreement with China to restore trust and recover market share lost during previous rounds of tariffs in 2018–2019.
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