China’s US soybean buys bring relief to farmers, but permanent deal elusive

China’s resumption of US soybean purchases tells American farmers that their key Chinese customers are returning, but analysts still expect the trade of agricultural products to become a regular part of ongoing negotiations between the countries in the coming years.

US President Donald Trump said aboard Air Force One that “tremendous amounts of the soybeans and other farm products are going to be purchased immediately”, after a meeting with President Xi Jinping in South Korea on Thursday morning.

The soybean deal is one of a slew of agreements reached following their first in-person meeting since Trump’s return to the White House in January. Other announcements include bilateral agreements on reducing fentanyl tariffs to 10 per cent; China’s commitment to not impose rare earth controls, based on a one-year agreement; discussions with Nvidia on chip exports to China; the postponement of a US Section 301 investigation; and a visit by Trump to China in April.

“I was extremely honored by the fact that President Xi authorized China to begin the purchase of massive amounts of Soybeans, Sorghum, and other Farm products. Our Farmers will be very happy!” Trump said in a social media post.

China already started buying some US soybeans from this harvest season, ahead of the meeting on Thursday, according to Scott Gaffner, a board member with the Illinois Soybean Association.

The shipments mark China’s first purchases from the US’ autumn harvest. US farmers – many of whom voted for Trump – had been urging their president to adopt a conciliatory approach, rather than a confrontational one, if a lasting soybean deal could be reached with Xi.

  

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