US-China Tariffs: Trump trade policy puts American soybean industry under threat

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One of the key agricultural markets for the US is soybeans. 57 percent of US soybeans are exported to China. But that trade is now under threat. President Trump's decision to impose tariffs on metal imports from China, as well as around 50 billion in other tariffs, has left soybean farmers concerned about retaliatory tariffs as CGTN's Dan Williams reports.

Springtime in Illinois and farmers are busy plowing their fields, preparing the seedbed for various crops such as soybeans.

US soybean exports is big business. Some 89.5 million acres of soybeans are expected to be planted this year, overtaking corn as the country's most planted crop. China imports 57% of all U.S. soybeans exports. But many farmers are worried.

The White House has already imposed metal tariffs on China and could now add further duties on Chinese goods worth nearly 50 billion dollars. Farmers here fear China will in return impose retaliatory tariffs on U.S. goods and that could include soybeans.

BRIAN DUNCAN, VICE PRESIDENT ILLINOIS FARM BUREAU "China is a huge market for American soybeans. They are a huge global market. A market that big is a price setter for us. So it could have a dramatic impact on farmers if trade barriers go up."

DAN WILLIAMS WOODSTOCK, ILLINOIS For many farmers, the threat of these tariffs is of real concern. With some even warning that they could drive some farmers out of business.

The potential tariff war comes following an overall decline in crop prices of 40 percent over the last five years. Michele Aavang is among those concerned.

MICHELE AAVANG ILLINOIS FARMER "This news could really not be coming at a worse time for American farmers. We've been faced with low commodity prices for a number of years now. All this is doing is adding concern and uncertainty for farmers. I would say if it goes to a trade war that would be devastating for agricultural communities."

It's not just China who could target the US soybean market in retaliatory measures. Mexico is the second largest market for U.S. soybeans. A further concern for farmers given the current North American Free Trade Agreement is also under threat.

BRIAN DUNCAN, VICE PRESIDENT ILLINOIS FARM BUREAU "I would like to see trade agreements. More of them. I would like to see a fair court that if there is disagreements between countries, which there always will be right, that there is a place that they are worked through and settled in a way that we can anticipate, understand going forward. We would like certainty."

Right now, that looks unlikely. It would appear farming is once again on the frontline of a possible international trade war. Dan Williams, CGTN, Woodstock, Illinois.