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The US agricultural industry is unhappy with the tariffs imposed by the Trump administration. Farmers acknowledge the impact of relying solely on domestic demand and are concerned that other countries might start purchasing soybeans from Brazil due to the American tariff rates.
Washington is under pressure as the Brazilian government makes its initial attempt to negotiate a diplomatic solution to the US tariff issue.
A meeting is set to occur on Thursday between Vice President Geraldo Alckmin and U.S. Secretary of Commerce, Howard Lutnick, following Trump’s mention of Brazil in a speech at the American Congress regarding alleged unfair trade practices.
Brazil is the champion.
One of the few areas where Chinese agribusiness has a positive surplus is among the various sanctions imposed by the US government.
Beijing responded promptly to US soybean tariffs by imposing a 10% tax on imported raw materials. Farmers believe that Brazil could fill the gap left by the world’s largest economy.
Caleb Ragland, the president of the American soy association, cautions that foreign soy producers in countries like Brazil are ready to supply the demand in case of a trade conflict between the US and China.
Soybean, the top agricultural export in the U.S., experiences significant consequences from disruptions in trade, particularly with China being its largest market, according to the executive.
External marketplace
The industry lobby made strong efforts in the past few months to stop the White House from starting a trade conflict with China. Concern grew further when President Trump recommended U.S. farmers to focus on selling their products domestically during his speech to Congress.
The exporters mocked the earnings, arguing that the local market was insufficient to compensate for the missed opportunities on the global market.
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