Due to US tariff war, import of soybean from Brazil to China increased

09-May-2025 04:50 PM

Shanghai. The US President has announced that an import duty of at least 145 percent will be imposed on Chinese goods, while China has responded by imposing a 125 percent customs duty on US products.

This has made the import of US soybean to China economically unviable. As a result, Chinese buyers have stopped signing import contracts with the US and have shifted their focus to increasing soybean imports from Brazil.

Interestingly, Brazil's soybean production is expected to reach a record high of 1690 lakh tonnes this season, ensuring that China can meet its demand from there without difficulty.

Around 70 percent of Brazil's soybean exports already go to China. In addition, Argentina is forecasted to produce 500 lakh tonnes of soybean, which could slightly increase its exportable supply.

Globally, Brazil is the leading producer and exporter of soybean, followed by the US and Argentina. China ranks fourth and India fifth in terms of production and export.

Traditionally, China has been the largest market for US soybean exports, so the suspension of trade with China presents a significant challenge for American exporters.

The soybean sowing season is underway in the US, with harvesting expected in September-October. With the Chinese market closed, American farmers may lose interest in cultivating soybean.

China still has alternatives. Apart from Brazil and Argentina, soybean can also be imported from Uruguay and Paraguay if needed.

However, Brazil remains the most viable source to meet China's soybean requirements this time. China may continue importing maize and wheat from the US, but these can also be sourced from Brazil, Argentina, Australia, Canada and other countries if necessary.