BRAZILIAN SOYABEAN GENERATES TENSION IN TRADE WAR BETWEEN US AND CHINA

One of Brazil’s main agricultural products, soyabeans, has become a new point of tension between US President Donald Trump and the Chinese government. In retaliation for China’s high tariffs on industrial goods, the government of Xi Jinping has now taxed several US agricultural products, including soyabeans, by 25%. Who ended up winning with this, at least in the short term, was Brazilian soya. As US grain became more expensive, China replaced US purchases with Brazil’s. As a result, Brazil became the largest soya exporter to China – and the world – surpassing the US. According to the American press, Donald Trump did not naturally face this exchange. The subject was widely reported last week by major US media. According to a CNN report, the US president would be “dissatisfied” with China over the replacement of US soya imports by Brazil. “The trade war began in March 2018 and in 2019 there was a deepening of the dispute, with tariff increases on the same Chinese and American products,” CNI International Negotiations Manager Fabrizio Panzini told BBC News Brasil. “As Brazil naturally has a competitiveness in soyabean and is one of the few international players, along with the United States and Argentina, it is only natural that a drop in US exports will lead to an increase in Brazil’s exports.”
Source: Portos e Navios