After the US-China summit, US farmers were disappointed as China did not reduce tariffs on US soybeans.

[New York Current Affairs] Following the US-China summit meeting late last month, China did not indicate any intention to reduce tariffs on US soybeans. There are voices of disappointment among rice farmers who were hoping for export expansion. Rising prices for diesel oil, which is essential for agricultural work, are also hitting farmers hard, and the headwinds against the Trump administration are increasing ahead of the midterm elections in November.

US and China release list of tariff reductions of 4.7 trillion yen each, to be implemented at the same time

"We are disappointed that soybeans are not included in the tariff reduction." The U.S. Soybean Association, a producer group, did not hide its disappointment with the outcome of the U.S.-China summit. After the meeting, the U.S. and Chinese governments released a list of products subject to tariff reductions worth $30 billion (approximately 4.7 trillion yen), but soybeans were not included.

The largest export destination for U.S. soybeans is China. However, in recent years, due to the escalating trade war between the United States and China, the market share has been lost to competing Brazilian products. If the additional 10% tariff on U.S. soybeans remains in place, private Chinese traders may continue to hesitate in purchasing soybeans.

China has indicated its intention to lower tariffs on corn and wheat to the United States, but demand for these items is likely to be limited. Hideki Hattori, chief grain analyst at Nippon, analyzes the reason why soybeans were excluded from the tariff reduction, saying, ``China probably wants to preserve soybeans as a card for future negotiations with the United States.''

We are currently in the midst of the harvest season in the United States, but the price of diesel oil needed for agricultural machinery and trucks has soared due to the turmoil in the Middle East, putting pressure on farmers. According to the American Automobile Association, the average price of diesel oil in the United States was about $6.37 (about 1,000 yen) per gallon (about 3.8 liters) on the 2nd, an increase of about 70% from the level a year ago.

On the 1st, Zippy Duvall, president of the American Federation of Farmers, the largest agricultural organization in the United States, appealed to President Trump for support such as lowering the diesel tax, saying, ``We cannot postpone harvesting or stop using fuel just because prices have risen.''