A new day, and a new development in the US-China trade war tit-for-tat.
To date, the trade ‘war’ has amounted to two powerful leaders throwing tariffs at each other behind a podium.
Regardless, it took a new twist overnight with China announcing it will place tariffs on the US$14 billion worth of soybeans it buys from the US. It was only yesterday that I wrote in Strategic Intelligence that it wouldn’t be long before China targets the US soybean sector. But even I wasn’t expecting it to be the next day.
‘China’s Ministry of Commerce on Wednesday said it plans to impose 25 percent duties on the commodity in addition to other US agricultural produce, including wheat, corn, cotton, sorghum, tobacco and beef. They’re among 106 products ranging from aircraft to chemicals targeted by Beijing in retaliation for proposed American duties on its high tech goods.’
Crucially, China buys almost all soybeans produced in the US.
This move will be good news for soybean producers in Brazil. Australia may even be able to step up and increase soybean exports to China.
However, as an Aussie investor, the daily barrage of US-China trade war news is frustrating.
After all, just how much can taxes from other countries impact us?