China responded to President Trump’s tariffs on Friday (11) by raising its own tariffs on American products to 125%.
The announcement came after Trump administration officials clarified that China now faces a minimum tariff of 145% on all exports to the United States. In an official statement, China mocked Trump’s tariff policies as “a joke” and said its new tariffs—which raise the tax on American imports from 84%—would take effect on Saturday.
Despite market volatility, President Trump stated that his administration was “doing very well on our TARIFF POLICY.” The president did not cite any specific examples of ongoing negotiations with foreign leaders or trade deals close to being finalized.
China Accelerates Purchase of Brazilian Soybeans
China is speeding up purchases of soybeans from Brazil as a way to avoid U.S. production. This week, the country bought an “unusually large amount of Brazilian soybeans,” according to Bloomberg.
At least 2.4 million tons of soybeans were purchased earlier this week—almost a third of the average volume China typically buys in an entire month, Bloomberg reported.
Soybeans are the primary feed base for pigs and poultry in China.
Brazil is the largest exporter of soybeans to China, with the United States in second place. Half of the U.S.’s soybean export revenue comes from shipments to China.
There is a perception that Brazilian soybeans may gain more space in China; however, there’s an important limitation: while Brazilian soybeans supply global markets in the first half of the year, American soybeans are harvested and sold in the second half.
This move is a small example of how far China will go in seeking alternatives to reduce its dependence on the U.S.
Sources: The New York Times, UOL, and Bloomberg