Rising tariffs mean falling demand and plunging prices for Iowa soybeans
The trade war between Washington and Beijing is hurting farmers who grow huge amounts of soybeans in Iowa for export to the massive Chinese market.
Farmers in Iowa hope that the strong commercial and close personal relationships that China and the U. S. farm state have nurtured for many years will help the two sides overcome complications like the record U. S. trade deficit with China.
Chinese President Xi Jinping has visited Iowa farmers repeatedly over the past couple of decades and former Iowa governor Terry Branstad is now the U. S. ambassador to Beijing.
The close ties have been strained by Washington’s allegations that China unfairly manipulates markets, steals American intellectual property, and creates bureaucratic obstacles to trade. China also accuses the United States of unfair practices.
Tariff war
The United States imposed tariffs on Chinese exports, and Beijing retaliated with tariffs on American agricultural products.
That meant that Iowa soybeans were more expensive and less competitive on global markets.
