|Researchers at the University of Tennessee Institute of Agriculture have released a study of the effect of American-Chinese trade disagreements on United States soybean exports.
China imports nearly two-thirds of all global soybean exports, accounting for nearly $22 billion in soybeans from the United States alone last year. Potential Chinese tariffs on United States soybeans could mean significant losses for American soybean farmers. If even a 25 percent tariff is imposed, United States agricultural exports are projected to drop to as low as $7.7 billion. This would have a significant impact on states like Tennessee, where soybeans are the state’s largest crop by acre and have a production value of $796 million.
The University of Tennessee Institute of Agriculture study considered three hypothetical tariff rates and provided insight into the future of a vital agricultural industry that is facing uncertainty. Soybeans represent one of the few areas where American industry can outshine the national trade deficit with China. This study has the potential to help policy makers find mutually beneficial outcomes to trade negotiations with China.
To learn more about this study from the University of Tennessee Institute of Agriculture, read more here.
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