U.S.’s potential tariff on Chinese steel sparks fear of soybean retaliation

In Texas, S&P Global Platts reports that the U.S. Department of Commerce’s recommendation to impose a tariff on Chinese steel imports has sparked worries that China may retaliate against U.S. soybean imports. The U.S. Department of Commerce released a number of recommendations Friday following its investigation under Section 232 of the Trade Expansion Act. Among them was a 53% tariff on steel from China and 11 other countries. China is a major importer of U.S. soybeans and its absence from the US export picture could greatly affect market fundamentals.

“It is a general concern that the current administration is playing a risky game that could greatly affect the agriculture market,” a source told S&P Global Platts. “It has become a question of, What if?” According to S&P Global Platts, that concern was echoed by John Heisdorffer, president of the American Soybean Association who said, “These potential tariffs have the potential to make life very hard for soybean farmers. Our capable competitors in Brazil and Argentina are all too happy to pick up whatever slack we leave in supplying the Chinese market.”