China halts U.S. corn, soybean purchases as trade tensions flare

CHINA – China stopped placing new orders for U.S. corn and soybeans since January 16, 2025, just four days before President Donald Trump’s second inauguration, Nikkei Asia reported, citing data from the U.S. Department of Agriculture (USDA).

The development comes amid a resurgence in trade tensions between the two largest economies, sparking fresh concerns among U.S. agricultural exporters.

President Trump, who reignited tariff policies shortly after returning to office, has imposed levies as high as 145% on Chinese imports.

In response, Beijing has slapped retaliatory tariffs of up to 125% on U.S. goods and pledged to “fight to the end,” according to official Chinese statements.

The renewed trade hostilities have once again cast a shadow over U.S. soybean exports to China, historically the largest market for American soybeans. In 2024, the U.S. shipped more than 27 million tonnes of soybeans to China, valued at US$12.8 billion. However, the latest figures signal a potential sharp downturn in that trade.

However, Brazil has now overtaken the U.S. as China’s primary soybean supplier. According to Nikkei Asia, a Chinese trade delegation recently visited Brazil for bilateral talks to increase soybean imports.

Brazil’s competitive prices and steady harvests have helped it capture a growing share of the Chinese market. As of March 2024, Brazilian soybeans accounted for more than half of China’s total soybean imports, according to AgriWatch.

The American Soybean Association (ASA) has raised alarms about the potential fallout. ASA President Caleb Ragland said the escalating tariffs could have immediate and long-term consequences for U.S. farmers.

“We run the risk of immediate impacts this growing season, along with the impacts a prolonged trade war with China will inflict on our industry once again,” he said.

The short-term disruptions are painful, but the long-term repercussions to our reputation, our reliability as a supplier, and the stability of those trading relationships are hard to even put into words. We’re still reeling from TW1, Trade War One, and are certainly not thrilled about an extended TW2,” he added.

While President Trump recently announced a 90-day tariff reprieve for most affected countries, allowing for further negotiations, China was notably excluded from the temporary relief. The pause lowers tariffs to 10% for those countries, but leaves in place the full rates for Chinese goods.

Beyond foreign sourcing, China is also accelerating efforts to increase domestic grain production. A report released April 20 by the Chinese Agriculture Outlook Committee projects record grain output of 709 million tonnes in 2025, up from 706.5 million tonnes in 2024.

The report, issued under the Ministry of Agriculture and Rural Affairs, attributes the gains to enhanced per-unit crop yields and expanded cultivation.

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