U.S. soy exports tied to EU auto tariffs

Feb 20, 2019

The European Union will reduce soybean imports if President Trump taxes its cars

By Diego Flammini
Staff Writer
Farms.com

U.S. soybean producers could face the consequences if President Donald Trump moves forward with tariffs on a major trading partner.

The European Union will step back from its commitment to purchase more American soybeans if the U.S. president imposes tariffs on European vehicles, Jean-Claude Juncker, president of the EU Commission, has warned.

“Trump has given me his word that there will be no car tariffs for the time being,” Juncker told German newspaper Stuttgarter Zeitung, the Associated Press reported. “I believe him. However, should he renege on that commitment, we will no longer feel bound by our commitments to buy more U.S. soya and liquid gas.”

Since July, when Juncker and Trump agreed to improve trade relations between the two partners, U.S. soybean exports to the European Union have increased 112 percent.

Last month. the EU announced it would allow the use of U.S. soybeans in biodiesel production.

But the relationship could change with the decision surrounding a report.

On Sunday, Wilbur Ross, the U.S. commerce secretary, submitted a report to President Trump examining “the effect of imports of automobiles and automobile parts on the national security of the United States.”

President Trump now has 90 days whether to act on the report. He could impose tariffs of up to 25 percent on cars and parts from Europe.

Under Section 232 of the Trade Expansion Act, the president can impose tariffs based on recommendations from the commerce department.

Farms.com has reached out to the American Soybean Association for comment.

Video: Is China Buying US Soybeans + USDA Nov 14th Crop Report could be “Game Changing”

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