Topline
Soybean prices reached a 15-month high Tuesday as the commodity, which makes up the U.S.’ largest agricultural export, is embroiled in the trade war between the U.S. and China that’s affecting American farmers.
SOUTH BELOIT, IL – OCTOBER 9: John Handy displays a handful of GMO (genetically modified organism) Roundup Ready soybeans brought in by a farmer to the Demeter grain elevator October 9, 2003 in South Beloit, Illinois. The elevator tests beans to determine if they are a GMO or non-GMO crop. The elevator pays a premium for non-GMO crops that are often exported to Japan and can be used in food products. To verify the GMO status the elevator keeps on file a test strip and a sample from each truckload of beans it buys from farmers. (Photo by Scott Olson/Getty Images)
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Key Facts
Soybean prices have risen more than 11% since July last year as the crop has become a major tool in U.S.-China trade negotiations.
Soybeans are the U.S.’ largest agricultural export and China is the largest purchaser of the crop, buying more than half of American exports—but it’s yet to make any soybean purchases for the new season for the first time since the 1990s and is using U.S. farmers’ reliance on its sale as leverage in trade negotiations.
China placed a 10% tariff on American soybeans in March, before announcing an additional tariff of 34% on all U.S. goods in April as a response to the tariffs Trump had placed on Chinese products.
South American exporters like Brazil and Argentina have been able to capitalize on the standoff by exporting their soybean produce to China, according to a report by the U.S. Department of Agriculture.
Earlier this month, President Donald Trump called China’s boycott of U.S. soybeans an “economically hostile act” that was causing U.S. farmers some discomfort.
Treasury Secretary Scott Bessent said Sunday that China would be making “substantial purchases” of U.S. soybeans, as talks progressed on a potential trade deal.
Key Background
In 2024, China purchased $12 billion worth of soybeans from the U.S., according to the USDA. Ever since China paused soybean purchases in May, U.S. farmers have struggled to sell their produce, with the American Soybean Association sending a letter to the president in August complaining farmers were under “extreme financial distress.” President Trump has consistently expressed support for U.S. farmers, who overwhelmingly voted for him in the last presidential election. In his first term, Trump used the Department of Agriculture’s Commodity Credit Corporation fund to provide farmers with billions in aid during the trade war with China. In April, Trump announced a $19 billion economic rescue plan for U.S. farmers and ranchers that included sending cash payments and purchasing farm produce. Last month, Trump floated the idea of using tariff revenue to support U.S. farmers, Bloomberg reported. Trump’s One Big Beautiful Bill also includes expansions of federal crop insurance programs and support for new farmers and ranchers.
Tangent
Last week, U.S. Department of Agriculture Secretary Brooke Rollins said the Trump administration would resume rolling out the $3 billion in aid from the Farm Service Agency that was paused following the government shutdown as well as resuming core operations and critical services within the agriculture agency.
Further Reading