Reshuffling in Soybean Markets following Chinese Tariffs

By Cortney Cowley

In 2018, China significantly increased tariffs on imports of several agricultural commodities from the United States, including a 25 percentage point rise in the tariff on soybeans. China has been the primary foreign destination for U.S. soybeans over the past decade, accounting for a majority of U.S. soybean exports. A disruption in soybean markets could have broad implications for the U.S. agricultural sector, where soybeans have made up a majority of the growth in exports of bulk agricultural commodities and a growing share of crop production and farm revenues.