US President Donald Trump urged China on Sunday to sharply increase its soybean purchases from the United States. He said the move would also help “substantially reduce” Beijing’s trade deficit with Washington.

“China is worried about its shortage of soybeans. Our great farmers produce the most robust soybeans. I hope China will quickly quadruple its soybean orders. This is also a way of substantially reducing China’s trade deficit with the US. Rapid service will be provided. Thank you President Xi,” Trump wrote on Truth Social.

Tariff truce deadline approaches

The current tariff truce between the two countries will expire on August 12. However, the Trump administration has hinted that the deadline could be extended.

China’s massive soybean demand

China buys more than 60% of the world’s soybeans, sourcing mainly from Brazil and the US. Last year, it imported about 105 million metric tons, with nearly a quarter coming from the US. Most of the rest came from Brazil.

Market reacts to Trump’s remarks

Following Trump’s comments, the most active soybean contract on the Chicago Board of Trade rose 2.13% to $10.08 per bushel at 0446 GMT. It had remained largely unchanged earlier in the day.

Experts doubt the feasibility

Quadrupling soybean imports from the US would require China to buy the majority of its supply from American farmers. Analysts say that is unrealistic.
“It’s highly unlikely that China would ever buy four times its usual volume of soybeans from the US,” said Johnny Xiang, founder of Beijing-based AgRadar Consulting.

China’s shift to South America

In recent years, China has reduced its dependence on US soybeans and increased purchases from South American countries. Under the Phase One trade deal from Trump’s first term, Beijing agreed to increase US agricultural imports, including soybeans. However, it fell far short of those targets.

No US soybean orders yet for Q4

This year, trade tensions have persisted, and China has not bought any US soybeans for the fourth quarter. The delay comes as the US harvest and export season nears.

US farmers seek other buyers

The American soybean industry is looking for alternative markets, but none can match China’s scale. Last year, China bought 22.13 million tons of soybeans from the US and 74.65 million tons from Brazil.