Hi, everybody. I am a #soybean. I've been in the news lately because I'm caught in the middle of a trade war involving the two powerful countries of China and the United States. https://t.co/1up19zG6Vc pic.twitter.com/QEdyXqOMJu— China Plus News (@ChinaPlusNews) July 20, 2018
You see, China is the world's largest consumer of soybeans. In fact, it imports 85 percent of the crop. About a third of that is from the US, making it the second largest provider of soybeans for the world's most populous country.
America, on the other hand, exports much of the crop to the rest of the world. Most of the US' soybean exports -- 62 percent -- go to China. More expensive soy could mean that China will look to other sources for the bulk of its imports. As two of the top soybean suppliers to China, Brazil and Argentina could pick up the slack. If that happens, soybean farmers in the US could take an even greater hit. The crop's prices in the US already dropped by 18 percent from May to early July amid fears of a trade war, the lowest so far this year.
Why is Trump doing this now? Maybe it's because many US lawmakers are up for re-election in November, and Trump wants to win over more voters by starting a trade war.