Trump Warns China: Buy American soybeans or Face Cooking Oil Ban
The ongoing trade tension between the United States and China has once again escalated—this time over the import and export of American soybeans and cooking oil. President Donald Trump has issued a blunt warning to China, stating that if Beijing does not immediately resume the purchase of American soybeans, Washington will take strict measures to halt the import of several Chinese products, including cooking oil.
This statement comes at a time when American farmers are struggling due to falling prices and shrinking demand. Trump’s remarks have stirred political debate at home and created unease in global markets.
Trump’s Social Media Message and Its Impact
President Trump took to his social media platform Truth Social to directly attack China. He accused Beijing of deliberately avoiding the purchase of American soybeans, causing severe financial losses to US farmers. Calling it an “economic assault,” Trump asserted that the United States has the capacity to produce its own cooking oil and does not need to depend on China.
Trump’s statement was not merely political—it was also seen as part of a broader trade pressure strategy. He said, “China is no longer acting like a good partner. Our farmers work honestly and deserve fair value for their produce. If China refuses to buy soybeans, we will not hesitate to impose restrictions on their products.”
China’s Role in Soybean Trade and the Current Crisis
China was once the largest buyer of American soybeans. Between 2023 and 2024, the US exported nearly $12.6 billion worth of soybeans to China. However, during the current planting season, China has not placed a single order, sending shockwaves through the US market.
Soybean is one of America’s key agricultural products, used in animal feed, biodiesel, and edible oil production. China’s halt in purchases has caused major economic distress for US farmers. Prices have dropped in local markets, and many farmers have shifted to storing crops or limiting production to seed cultivation.
Agricultural analysts believe China’s move is strategic—Beijing may be trying to pressure Washington into making concessions in other trade areas, especially technology and machinery, in the coming months.
Trade Tension Reflected on Wall Street
Following Trump’s statement, turbulence was observed in the US stock market. Major indices such as Dow Jones, S&P 500, and Nasdaq Composite recorded declines as investors grew wary of intensifying US-China tensions.
During early trading hours, shares of agricultural companies linked to soybean production fell between 3% and 5%. The shipping and logistics sectors were also affected, as both nations imposed additional tariffs on each other’s shipping firms.
The policy impact wasn’t limited to stock markets alone. Commercial banks and export financing agencies temporarily halted new deals, leading to an immediate slowdown in international trade flows.
US Stance on Cooking Oil Imports
In 2024, the United States imported approximately 1.27 million tonnes of cooking oil from China, a significant component of its food industry. However, President Trump has now made it clear that the US possesses enough domestic capacity and should not depend on Chinese imports.
According to the Department of Agriculture, the US can meet its domestic demand with existing resources. The Trump administration is planning to incentivise American oil producers to boost local output. This initiative is expected to align with the “Buy American Foods” campaign—one of Trump’s flagship efforts to promote domestic agricultural and food products.
Personal Relations and Business Complexities Between the US and China
President Trump acknowledged that his personal relationship with Chinese President Xi Jinping remains cordial, but disagreements often arise over trade. He remarked, “Maybe he treats me well personally, but when it comes to business, China always tries to take advantage.”
This statement reinforces Trump’s long-standing policy approach—maintaining personal rapport with global leaders while refusing to compromise on national economic interests.
Impact on Farmers and Domestic Politics
American farmers’ frustration continues to rise. Several farmers’ associations have supported Trump’s statement, arguing that China’s reduced demand has severely hurt the US agricultural market and that decisive government action is long overdue.
However, some experts warn that if the trade dispute drags on, it could affect American consumers as well. Rising domestic costs may push up prices of cooking oil and related products.
Possible Shock to the Global Economy
The US and China are the world’s two largest economies, and escalating tensions between them can disrupt global economic stability. Experts believe that friction over key commodities such as soybeans and cooking oil will not only impact prices but also strain international supply chains.
If China continues to avoid buying American soybeans, it may turn to alternative suppliers such as Brazil or Argentina. Meanwhile, the US could explore new export markets in countries like India, Vietnam, or Eastern Europe.
Conclusion
Following President Trump’s warning, a new chapter has opened in US-China trade relations. The dispute is unlikely to remain confined to agriculture—it may soon extend to technology, industrial goods, and the energy sector.
Analysts suggest that dialogue between the two countries may resume in the coming weeks, but for now, the atmosphere remains tense. Both American farmers and investors are closely watching the Trump administration’s next move, which will determine whether this warning remains rhetorical—or marks the beginning of a broader trade confrontation.
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