As tensions rise between the US and China, China, on orders of President Xi Jinping has placed a stop on orders of U.S. soybeans and corn. This shocking decision comes only days before President Donald Trump is due back to work in the White House. It appears to be a strategic attempt to reach American farmers, an important constituency that has long supported Trump loyally.
The U.S.-China trade war initiated by the U.S. early in Trump’s first term. In more recent years, it has skyrocketed. The freeze on orders provides clear evidence of increasing strain between the countries. They’re all still facing a tough economic climate of tariffs and trade obstacles to boot. By targeting U.S. agricultural exports, Beijing aims to send a clear message to American farmers, many of whom are aligned with Trump’s policies.
American farmers have long been some of President Trump’s most vocal supporters, seeing his administration’s trade policies as a boon to their markets. As China shifts its trade focus toward Brazil and other countries, U.S. farmers may find themselves increasingly caught in the crossfire of this ongoing trade conflict. The interruption of soybean and corn shipments would certainly rattle agricultural markets. This development might further poison bilateral relations as well.
In recent weeks, Trump has doubled-down on his support for tariffs on countries like China and Mexico. His ultimate goal, he has said, is to shield U.S. industries from foreign competition. Some industries are vigorously opposing this move. Yet, it is wildly popular with his base – namely, American commodity farmers who have benefited from previous trade deals.
China’s recent decision to suspend purchases of U.S. agricultural products is a case in point that illustrates the tricky intersection of domestic politics and international trade. President Xi Jinping is using a heavy hand to expand China’s economic clout. This deep freeze of agricultural markets has significant consequences, poisoning the overall state of economic relations between the two superpowers.