China's refusal to buy American soybeans is causing significant concern among U.S. farmers, prompting President Donald Trump to label it an "economically hostile act." In a post on Truth Social, Trump stated, "I believe that China purposefully not buying our Soybeans, and causing difficulty for our Soybean Farmers, is an Economically Hostile Act. We are considering terminating business with China having to do with Cooking Oil, and other elements of Trade, as retribution. As an example, we can easily produce Cooking Oil ourselves, we don’t need to purchase it from China."

As the U.S. soybean harvest begins, China, once the largest buyer, has not made any purchases, leading to a drop in prices and panic among farmers. This situation reflects a broader trade dispute, with China using economic measures in response to Trump's tariffs. The U.S. typically exports about 61% of the world's soybeans, but this year, there have been no purchases from China, a stark contrast to last year's Rs 1.05 lakh crore in sales.

Lu Ting, chief economist at Nomura Holdings, noted, "US soybeans now are not that important to China. That’s why Beijing can afford to use the import ban as a bargaining tool." The tariffs have also raised costs for farmers, squeezing their profit margins. Many farmers in the Midwest are now storing their crops and delaying sales due to the uncertain market. Morey Hill, a soybean grower from Iowa, expressed his concerns, stating, "There’s no incentive to sell right now," and warned that without a timely agreement with China, the market could face severe challenges.

The situation is reminiscent of China's previous tactics with rare earth minerals, which were used as leverage in trade negotiations. Lu Ting remarked, "Beijing’s new bargaining chip is an import ban on US soybean." While soybeans may not be as unique as rare earths, they are crucial for China's large hog and poultry industries.

In response to the trade tensions, China has increased its soybean imports from South America, purchasing 2 million tons from Argentina in September. Dean Buchholz, a farmer wrapping up his final crop this year, shared his frustration, saying, "I can’t make it work to where it would be practical to keep going without me spending a boatload of money and keep putting myself into more debt."

Caleb Ragland, president of the American Soybean Association, echoed the sentiment, stating, "The frustration is overwhelming." The timing is critical, as over half of U.S. soybean exports typically occur between October and December. China is reportedly delaying purchases until February when Brazil's crop becomes available. Sarah Taber, a crop scientist, warned that if no agreement is reached by December, U.S. soy exports could miss the entire global buying window.