US urges China to purchase more American soybeans amid trade tensions

USA/CHINA – U.S. President Donald Trump has called on China to dramatically increase its purchases of American soybeans, urging a fourfold rise in orders to address what he described as a Chinese soybean shortage and to help narrow the trade deficit between the two nations.

The appeal, made via Trump’s Truth Social account early August, comes just ahead of the expiration of a trade truce between Washington and Beijing.

“China is worried about its shortage of soybeans,” said Trump.

 “Our great farmers produce the most robust soybeans. I hope China will quickly quadruple its soybean orders. This is also a way of substantially reducing China’s trade deficit with the USA. Rapid service will be provided. Thank you, President XI.”

The announcement triggered a surge in soybean futures, with prices on the Chicago Board of Trade jumping over 2.8%, marking the most significant intraday gain in four months. Corn and wheat prices also rose in response to the news.

China, the world’s largest buyer of soybeans, typically sources the oilseed from both the U.S. and Brazil.

However, recent data from the U.S. Department of Agriculture shows that China has not booked any U.S. soybean cargoes for the upcoming marketing year starting in September.

Analysts suggest that ongoing trade tensions and high tariffs have pushed China to diversify its sources, including increased imports from Brazil and trial purchases from Argentina.

Trump’s push coincides with the upcoming U.S. harvest, which is expected to boost domestic supply.

Reports indicate that China has built up substantial soybean reserves and is also exploring alternatives, such as soybean meal from Argentina, to meet its demand.

Experts pointed out that China currently faces no shortage of soybeans and could meet its needs entirely from suppliers other than the U.S.

If anything, the Chinese market is unlikely to dramatically increase purchases from the U.S. due to existing tariffs and competitive pricing from Brazil and other countries. 

Despite this, experts remain skeptical about China’s willingness to meet Trump’s request.

“It’s highly unlikely that China would ever buy four times its usual volume of soybeans from the US,” said Johnny Xiang, founder of Beijing-based AgRadar Consulting.

The appeal also revives discussions around the Phase One trade deal signed during Trump’s first term, under which China had agreed to increase purchases of U.S. agricultural goods. However, Beijing fell short of those targets.

With the trade truce deadline looming on August 12, Trump’s remarks may be aimed at influencing negotiations.

Whether China will respond with increased purchases remains uncertain, especially given the complex geopolitical backdrop and recent retaliatory tariffs on U.S. goods.

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