Soybeans and cooking oil have emerged as flashpoints in the trade and tariff war between the US and China.
Today, President Trump posted on his social media, stating that China’s deliberate avoidance of buying US soybeans, thereby causing difficulties for American farmers, is seen as an economically hostile act.
He further noted, “We can easily produce cooking oil ourselves and do not need to purchase it from China.”
Earlier on the 1st and 9th of this month, he mentioned plans to discuss several issues with Chinese President Xi Jinping, including the soybean issue.
[Reporter] “May I ask about soybeans? What specific plans are there to help farmers? Are you considering direct subsidies or tax reductions? Have you finalized any concrete measures?”
[Donald Trump / President of the United States] “I think (China) will open up more to soybean imports. The reason for these discussions is that President Xi has things he wants to discuss with me, and I have things I want to discuss with him, one of which is soybeans.”
However, today, he even mentioned “cutting off cooking oil trade,” stepping up his aggressive stance.
Last year, 52% of the soybeans exported from the US went to China. However, when the tariff war erupted this spring, China imposed a 34% retaliatory tariff on American agricultural products, including soybeans. While this has been somewhat relaxed, a 20% tariff still applies to US soybeans.
As exports of American soybeans lost price competitiveness and plummeted, Midwest farms in the US, which are currently in harvest season and a strong support base for Trump, are suffering significant damage.
China, known for its high consumption of cooking oil due to frequent stir-frying, and the necessity of soybeans in pig feed, has historically relied on imports for about 80% of its soybean demand, particularly from the US.
However, since the trade war began during Trump’s first term, China has increased its imports of Brazilian soybeans and, more recently, doubled soybean imports from Argentina, thus diversifying its sources.
Meanwhile, following President Trump’s early morning remarks, domestic companies such as Sempio Foods, Shinsung Holdings, and SAJO Daerim, which produce various sauces and cooking oils, saw a surge in their stock prices.
(Video Editing: Lee Seong-kyu)