The way the Supreme Court has rejected the tariffs of US President Donald Trump, it definitely got a shock. Although it is not so less, now because of this other countries are also ready to change their policies. Whereas earlier Donald Trump was forcing different countries to make deals by threatening them with tariffs, now the situation is changing after the setback he got from the Supreme Court on this tariff. Analysts say that now China is also going to give a shock to it, perhaps it may not fulfill its promise of buying soybean in large quantities from America.

Darrin Fessler, senior advisor at Lakefront Futures, said Trump was trying to put pressure on China. Now the question is, when the tariff pressure is removed, will China still buy American soybeans? He said that American soybean is still costlier than Brazilian soybean. If China has no compulsion, then why would it buy from America? This will be a blow to Trump as prices had increased by about 8.49% since February 4, when Trump said on Truth Social that China would buy an additional 8 million metric tons of American soybeans.

Why won’t China buy America’s soybeans?

1. Many analysts and businessmen already had doubts as to why China would buy soybeans in such large quantities. China has already purchased 12 million metric tons of American soybeans, which was its commitment under the trade deal signed in October. Last year, China had distanced itself from American soybean for several months.
2. China’s government agency Sinograin also held a public auction to make room for US shipments, while a record crop is expected in Brazil, from where China can buy cheap soybeans.
3. After the removal of tariffs, it may become more difficult for American soybeans to compete, because Brazil is currently producing huge production and soybeans there are very cheap.
4. The Supreme Court said that Trump exceeded his limits by imposing tariffs under the law made for national emergency. Now the question is arising that through which legal route the administration will implement the new tariffs.

Because America wants to sell soybeans to China?

China is the world’s largest soybean importer. This decision has further increased the uncertainty in the market. Traders will now watch what steps the Trump administration takes next and whether China will continue buying from the US or turn to Brazil and Argentina, which do not have the same trade tensions as the US. On the other hand, American farmers are facing low or negative profits for the fourth consecutive year. Despite receiving record assistance from the government, agricultural income is expected to decline this year. Dan Bass, President of Egg Resources Company, said that since the President has snatched the weapon of tariff from his hands, it is not clear what new approach he will adopt next, in such a situation uncertainty has also increased and a decline in soybean prices has also been recorded on Friday.