Trump Administration Faces Backlash Over Soybean Trade with China

Washington – The U.S. Treasury is facing scrutiny following China‘s purchase of millions of tons of Argentinian soybeans. This comes just after the Treasury announced financial aid to Argentina, provoking concerns among American soybean farmers struggling with a blockade on their products.

A text message from Treasury Secretary Scott Bessent, surfaced in a photo, indicated alarm from U.S. Agriculture Secretary Brooke Rollins about the implications of the deal. It noted that U.S. farmers would suffer as Argentina lifted export tariffs on grains, making its products cheaper for China.

“Soy prices are dropping further because of it. This gives China more leverage on us,” the message stated. However, Bessent’s office has not commented on the controversy, which reveals the unintended impacts of President Donald Trump’s foreign policy on the agricultural sector.

Rollins acknowledged the challenges faced by American farmers during a news briefing, citing that many are currently in a difficult financial situation. “The ability to offset any payments to the farmers through potential tariff revenue is really where the president wants us to head,” she stated.

Argentina, under President Javier Milei, has implemented radical changes to its economic policies since taking office in 2023, resulting in reduced inflation and increased exports, but not without political costs.

Amid ongoing tensions, Chinese buyers have taken advantage of Argentina’s loosened grain export controls, purchasing multiple shipments of soybeans. This development complicates U.S.-China trade relations, as China seeks alternatives to U.S. soybeans amid ongoing tariffs.

The American Soybean Association underscored the need for the administration to secure a trade deal with China, stating that farmers have not sold any soybeans to China since May. “China is the world’s largest soybean customer, and typically our top export market,” said Caleb Ragland, president of the association.

On top of high tariffs imposed by China, American farmers now face economic strain from inflation and labor shortages, leading industry representatives to dub the situation “farmageddon.”

To alleviate the situation, President Trump suggested at the White House on Thursday that his administration may distribute tax revenue to support struggling farmers temporarily. “We’re going to take some of that tariff money, we’re going to give it to our farmers,” Trump declared.

The situation remains urgent as farmers begin the harvest. “With harvest here, patience may be running thin,” remarked Joe Jennings, CEO of Daitaas Holdings, highlighting the pressure on the agricultural community.