Meanwhile, Beijing has turned to Brazil and Argentina for soybeans, which are also cheaper as they don’t face retaliatory Chinese tariffs.
Now, China has imported so much supply from South America it has a glut of soybeans.
China’s soybean processors have purchased about 40 million tons from South America this season and “have zero financial incentive” to buy more U.S. soybeans, he added.
In fact, China’s oversupply of South American soybeans has slashed prices more than 20% from an April peak in key coastal Chinese regions, according to Mysteel data cited by Reuters.
“The administration expects our trading partners to adhere to their deal commitments,” a U.S. official told Fortune.
StoneX’s Suderman noted China appears to be complying with other parts of the trade deal, namely limiting exports of components used to produce fentanyl.
Those export curbs cleared the way for Trump to lower his fentanyl-related tariff on China to 10% from 20%. »