China’s Upcoming Massive U.S. Soybean Purchases: Insights from Farmer and Expert Bessent on Tariff Implications | Fortune

Treasury Secretary Scott Bessent recently shared encouraging news about U.S.-China trade relations. He indicated that a longstanding trade conflict may be turning a corner. In an interview on CBS’s Face the Nation, he mentioned that the potential 100% tariff threat previously made by former President Trump is now “effectively off the table.” This means fewer barriers for trade, especially concerning exports of rare earth elements from China.

Bessent noted that the discussions over the weekend in Malaysia were crucial. They focused on multiple issues, including the recovery of American agricultural exports and China’s role in addressing the fentanyl crisis. He emphasized that the trade talks might bring relief to struggling U.S. farmers, who have faced declining crop prices and high costs.

Farmers have been vocal about their challenges as China, a traditional top buyer, has reduced soybean purchases this season. Bessent, who is also a soybean farmer, expressed empathy for their struggles, stating, “I have felt this pain, too.” He assured that soybean farmers will likely benefit greatly from this trade deal.

Interestingly, a recent shipment of soybeans from Argentina to China was reportedly pre-planned, taking advantage of lowered export duties. Bessent explained, “The three leading suppliers are Brazil, Argentina, and the U.S.” He believes that this will help stabilize the global soybean market and encourage significant purchases from China going forward.

Bessent also hinted at potential easements in China’s export controls on rare earth elements, while U.S. restrictions may remain steady. When questioned about limits on chip exports and curbs on Chinese investments, he confirmed that there would be no changes to export controls at this time.

This progress suggests a shift in how the U.S. and China engage economically, especially as both countries prepare for a meeting between President Trump and President Xi Jinping. This meeting may further shape the future of trade and economic relations.

For context, a recent survey revealed that over 60% of American farmers feel optimistic about trade policies moving forward, compared to just 38% last year. This indicates a growing confidence that trade negotiations are heading in a more positive direction.

Overall, Bessent’s insights reflect a cautious but promising outlook on the ongoing trade relationship between the U.S. and China, providing hope for those impacted by the agricultural sector and beyond.

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China,Donald Trump,Tariffs and trade