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% — will take effect on Saturday.
Despite market volatility, President Trump stated that his administration is “doing very well in our TARIFF POLICY”. The president did not cite specific examples of ongoing negotiations with foreign leaders or trade deals close to being finalized.
China Accelerates Purchases of Brazilian Soybeans
China is accelerating purchases of soybeans from Brazil as a way to avoid US 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 that China buys in an entire month, Bloomberg reported.
Soybeans are the main base for feed 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 US soybean export revenue comes from shipments to China.
There is a perception that Brazilian soybeans could gain more space in China; however, there is 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 search of alternatives to reduce its dependence on the US.
Sources: The New York Times, UOL and Bloomberg