Despite China fulfilling its initial commitment to purchase 12 million metric tons of American soybeans, the sustainability of the October trade agreement remains uncertain due to the Trump administration’s volatile trade policies. Treasury Secretary Scott Bessent confirmed China’s compliance during the World Economic Forum in Davos, where he met with Chinese Vice President He Lifeng, who reaffirmed Beijing’s commitment to future purchases.
The agreement, forged after Trump and Xi Jinping’s meeting in South Korea ended last summer’s purchasing halt, requires China to buy 25 million metric tons annually over the next three years. However, recent policy shifts—including threatened tariffs on countries trading with Iran and proposed levies on European allies—create instability that agricultural economists warn could jeopardize the deal.
American farmers continue struggling with soaring production costs for fertilizer, seeds, and labor, despite approximately $12 billion in federal aid. Soybean prices briefly surged to $11.50 per bushel post-agreement but have since fallen to $10.56—insufficient to cover most operational expenses. China’s strategic diversification toward Brazilian and Argentine suppliers, which now account for over 70% of its imports compared to America’s 21% share, further complicates long-term trade prospects.
Agricultural experts like Iowa State’s Chad Hart and University of Nebraska’s Cory Walters emphasize that market unpredictability and evolving tariff landscapes are crippling farmers’ decision-making capabilities and financial stability.