President Donald Trump has called on China to significantly increase its soybean orders from the United States, a move that could potentially address the trade imbalance between the two nations.
On Sunday, the President took to Truth Social to express his hope that China would quadruple its soybean orders from the U.S. to address its soybean shortage. Trump suggested that this could significantly reduce the trade deficit between the two countries.
“China is worried about its shortage of soybeans. Our great farmers produce the most robust soybeans. I hope China will quickly quadruple its soybean orders. This is also a way of substantially reducing China’s Trade Deficit with the USA.”
Experts Skeptical of China Boosting US Soybean Buys
China imports more than 60% of the world's soybeans, mainly from Brazil and the U.S. Following Trump's announcement, the most active soybean contract on the Chicago Board of Trade (CBOT) rose 2.13% to $10.08 a bushel.
However, experts remain doubtful about China's readiness to increase its soybean purchases from the U.S. fourfold. “It’s highly unlikely that China would ever buy four times its usual volume of soybeans from the U.S.,” Johnny Xiang, founder of Beijing-based AgRadar Consulting told Reuters.
It remains to be seen whether China's pledge to purchase more U.S. soybeans is tied to an extension of the trade truce, which is due to expire on August 12. Although the Phase One trade deal was signed during Trump's first term, China has yet to fulfill its targets for buying U.S. agricultural products.
US Soy Output Hit By Drought, Tariffs Strain Trade
The call for increased soybean orders comes at a time when the U.S. agriculture sector is facing challenges. In July, it was reported that prolonged dryness has been impacting major corn- and soybean-growing states in the U.S., leading to a downward adjustment in soybean production forecasts for 2025/26 to 4.335 billion bushels.
Furthermore, earlier in March 2025, China imposed tariffs on major U.S. agricultural imports, including soybeans, in retaliation to President Trump’s additional 10% levy on Chinese imports. This move has likely affected U.S. agricultural product manufacturers and suppliers, including soybean producers.
Some of the major companies associated with U.S. soybean production that could be affected by developments in this area include Archer Daniels Midland (NYSE:ADM), Deere & Co (NYSE:DE) and Bunge Global SA (NYSE:BG). On a year-to-date basis, they have gained 22.05%, 15.17% and 6.92%, respectively.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
