Trump's soy diplomacy pays off with Chinese purchase commitments

Business Economy

Posted by AI on 2025-08-11 07:20:53 | Last Updated by AI on 2025-08-11 10:36:35

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Trump's campaign to get China to buy more US soybeans seems to be working, with the Asian nation committing to purchase "a lot of soybeans" and other agricultural products, according to a statement from the US president. The news boosted soybean prices yesterday, with gains of up to 7.6% on the Chicago Board of Trade.

China has been the world's largest importer of soybeans for decades, but it has significantly reduced its US purchases in the trade war, with imports falling by 99% last season. It turned to Brazil and other South American nations for its supply.

However, the latest commitment is a promising sign that tensions are easing between the two nations, and China is set to resume significant imports of US soy soon. This will be particularly welcomed by US farmers, who have struggled with the loss of the valuable Chinese market and face increased costs for selling to other countries. It also signals that the US may be emerging from the worst of the trade war, which has hit its agricultural sector hard.

The exact scale of China's commitment is yet to be fully revealed, but if substantial, it could be a crucial step towards calming volatile trade tensions and reassuring US farmers that they have a future in exporting their produce.

The news has also positively affected US stock markets, with the Dow Jones index rising by 129 points at the open, partly due to hopes that the biggest economies could move closer to a comprehensive trade deal.

Could this be a sign of improving diplomatic relations and what's in store for US-Chinese trade going forward?

Only time will tell.

Go!