China is refusing to buy US soybeans and has cut imports due to the tariffs and trade wars. The Communist country has not booked a single shipment from US suppliers this season. The development is proving costly for US-based farmers, as China is the largest buyer of the crop globally. So what happened? It turns out that China is now buying soybeans from South American countries Argentina and Brazil, and the BRICS member is allowing the country to pay the Chinese yuan for settlements.
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BRICS Members Use Chinese Yuan For Soybeans, US Left Out
BRICS member Brazil is sending soybeans to China and is accepting the Chinese yuan for payments. The US farmers are now facing overflowing bins of soybeans with flat prices. President Donald Trump announced that he will raise the issue directly with Xi Jinping over the refusal. Trade tensions are increasingly becoming worrisome between the two economically powerful nations.
Trump revealed that he plans to announce a tariff revenue package for struggling farmers. He said that “It’s all going to work out very well” and “Make soybeans, and other row crops, great again!” Apart from Brazil and China, other BRICS members are also looking to use the Chinese yuan for soybeans. Trump’s tariffs seem to be backfiring on American farmers, making their crops difficult to export. China is not only finding new sellers, but they are also making them accept the Chinese yuan.
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“I’ll be meeting with President Xi, of China, in four weeks, and Soybeans will be a major topic of discussion,” Trump posted on Truth Social. “It’s all going to work out very well,” he said. Apart from BRICS member Brazil, China is also buying soybeans from Argentina, and the country is yet to accept the Chinese yuan as payment. Going by China’s tactics, it might not take long for Argentina to accept the local currency.