Soybean farmers warn tariffs and retaliation are already shrinking markets and incomes
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Summary
American Soybean Association testimony and senators' questions highlighted a sharp drop in U.S. soybean market share to China after the 2018 trade war and current retaliatory duties; witnesses urged rapid negotiations and expanded market‑development funding to restore export markets.
Witnesses representing U.S. soybean farmers told the Senate Finance Committee on May 14, 2025, that tariffs on U.S. goods and retaliatory duties abroad have substantially reduced export volumes to China and threatened farm incomes and rural communities.
The American Soybean Association witness introduced herself as Kayla Braglin, a ninth‑generation soybean farmer and the association’s president, and said China is “the largest market for oilseeds, importing approximately 110,000,000 metric tons or 60% of global soybean trade.” She said 54% of U.S. soybean exports went to China last marketing year, equal to about 25,000,000 metric tons and roughly $13,000,000,000 in value.
Braglin said retaliatory duties in the 2018 trade war reduced U.S. soybean exports to China and that the industry has not returned to pre‑2018 levels; she cited USDA Economic Research Service estimates that US soybean exports to China fell 76% in value from 2017 to 2018 and that agriculture losses exceeded $27,000,000,000, with soy accounting for 71% of those losses. She said the current combined duty facing U.S. soy into China is about 34% (including retaliatory and VAT components) and warned that renewed retaliation or escalation could depress futures and farm incomes as soon as the summer.
Committee members emphasized the need for predictability. Senators noted that potash — a major fertilizer input — is largely imported from Canada (witness said 87% reliance) and that import duties on such inputs would raise production costs. Witnesses urged negotiators to couple reciprocal tariff strategies with rapid talks to reduce existing tariffs, and they asked Congress to fund market‑development programs such as FAS/Market Access Program (MAP) and Foreign Market Development (FMD) funds.
The testimony noted that international competitors such as Brazil expanded production and infrastructure during U.S. export disruptions and that regaining market share will require sustained, predictable market access and investment in market development. The committee took testimony; no committee vote or formal policy adoption occurred during the hearing.