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According to Japanese media, starting from mid-January, China stopped booking orders for US-produced soybeans and corn, and also reduced purchases of cotton. To maintain stable supply of agricultural products, China has recently increased soybean purchases from Brazil and other countries, signing at least 2.4 million tons of purchase contracts with Brazil within a week.
After US President Trump took office, he repeatedly imposed tariffs on China, prompting China to adopt multiple countermeasures, including targeting agricultural products from Trump’s Midwestern voter base with reciprocal actions, imposing additional tariffs of up to 15% on US-produced soybeans, wheat, corn, etc.
Furthermore, China continues to reduce or stop purchasing US agricultural products. A report by Nikkei Asian Review pointed out that after the trade war during Trump's first term, China reduced the proportion of soybean imports from the US. In 2017, US-produced soybeans accounted for nearly 40% of China's total imports, which decreased to 20% by 2024.
According to a report by Nikkei Asian Review on the 21st, based on information released by the US Department of Agriculture about foreign company bookings for soybeans and corn, China's procurement of soybeans is marked as zero after January 16, 2025. However, from August 2024 to before January 16, 2025, there are multiple records of purchases by Chinese companies each month.
The report points out that, on a dollar basis, China's cotton imports from the US in March decreased by 90% compared to the same period last year; and from January to March, the amount of US-produced corn purchased by China was only about 1% of the volume during the same period last year.
To maintain stable supply of agricultural products, China has recently increased purchases from Brazil. The president of the Brazilian Soybean Producers Association, Buffon, stated that in early April, China signed purchase contracts of at least 2.4 million tons within a week, an exceptionally large-scale contract which reportedly accounts for about one-third of China's usual monthly volume.
The report suggests that Brazil will achieve a historically high level of soybean harvest in 2025. Buffon stated that as the world's largest soybean supplier, Brazil's position is being elevated.