The farm sector has been worst hit with the trade war.
China had been the chief importer of soybeans from the U.S. Shipment from the U.S. was very good with about $21 billion in 2017. The once-neglected crop now became a source of huge income.
But with the trade war, all these happy tidings came to an end. Though talks resumed at the G20 summit held in Japan, no official statement has been issued by the presidents.
President Trump has however not gone ahead by imposing more tariffs on Chinese goods. Further, he has stated that President Xi has promised to purchase farm products from the U.S.
The Iowa Soybean Association CEO Kirk Leeds will be visiting China to promote export sales for the farmers. He says that the geopolitical battle is affecting everyone especially the U.S. farmers. He has been associated with the soybean farmers for almost 30 years.
The U.S. farmers have been worst hit by the trade tariffs. They are tired of the many false-starts that they are promised but do not get.
China had bought 60 percent of soybeans from the U.S. Now it is buying the same quantity from other countries such as Argentina, Ukraine, and Brazil, which are the competitors of the U.S.
Though the U.S. has exported about 7.4 million metric tons of soybeans to China this year, it had marketed 28.4 million metric tons of soybeans in 2018, which is a far cry, says Leeds.
Moreover, the Africa swine fever has killed the swine herd in China and it now requires less quantity of soybeans, remarks Leeds. He says that China has lost about 25 percent to 30 percent of its hogs to this viral epidemic.
Leeds is now skeptic about the relief for the U.S. farmers from the trade talks. However, he hopes that the talks would go well and the farmers will get back their lost export orders.