China Hits Back with Tariff on U.S. Soybeans
After the U.S. imposed tariffs on $50 billion worth of Chinese products, within 11 hours China quickly retaliated by announcing a list of 25 percent additional tariffs on 106 U.S. goods, including soybeans.
The move by China is believed to specifically target the U.S.farmbelt, agriculture exports, and states that supported President Trump in the last election.
Although President Trump states that we are not in the midst of a trade war, the escalation has negatively affected global markets and shares of publicly traded ag companies including Deere & Co., which saw its per share price fall by 3.9 percent by mid-morning on April 4.
Insiders did not expect such an aggressive reaction from China, and many are speculating on how far each side will, but U.S. Commerce Secretary Wilbur Ross said that he believes that the escalation will bring the two sides to the negotiation table.
Other U.S. agricultural good affected by the tariffs include U.S. pork, frozen beef, cotton, wine, apples, pears, cherries, oranges, strawberries, almonds, cashews, pistachios, walnuts, lemons, plums, peaches, and mandarins.