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President Donald Trump said on Tuesday his administration is considering "ending trade with China as it pertains to cooking oil" in response to Beijing's refusal to buy US soybeans. In a post on his Truth Social platform, Trump said China was committing "an economically hostile act" by "deliberately refusing to buy our soybeans, causing hardship for our soybean farmers".
Trump added that ending trade with China over cooking oil and "other elements of trade" were potential forms of "retaliation" his administration is weighing. "For example, we could easily produce cooking oil ourselves, and don't need to buy it from China," he wrote. China has long been by far the largest buyer of American soybeans, importing roughly 27 million tonnes worth close to $12.8 billion in 2024 alone. But amid an escalating trade war with the Trump administration, Beijing has not purchased a single US soybean since May.
With retaliatory tariffs on American goods making soybeans more expensive for Chinese importers, China has instead turned to South American producers to source the crop.
One such supplier is Argentina, which reportedly suspended export taxes on the same day the Trump administration first pledged to support the country's economy through a $20 billion currency swap. Argentine President Javier Milei visited Trump at the White House on Tuesday, just hours before the American leader launched his latest broadside against China. Meanwhile, China's used cooking oil exports hit record levels in 2024, with the United States accounting for 43% of the total. Trump's social media post follows a string of scathing remarks he has made about China, raising questions over the status of ongoing trade talks and triggering sharp swings in stock prices. The S&P 500 index fell immediately after Trump's post, ending the trading day in the red after a volatile session. Stocks tumbled on Friday after Trump threatened a massive increase in tariffs on Chinese imports in response to Beijing's new export controls on rare earth minerals. Later that day, Trump said he would impose an additional 100% tariff on Chinese imports starting 1 November. But on Sunday, Trump appeared to soften his stance, writing: "Don't worry about China, it will all be fine!"
Source: Al Mal Forum