Chinese companies are turning to alternative supply sources as the 25 percent retaliatory tariffs have made U.S. soybeans prohibitively expensive.
Under the new tariffs, Chinese companies would have to pay 700 to 800 yuan (110 U.S. dollars) more for a single tonne of American soybeans, which is about 300 yuan more than the Brazilian equivalent.
"Chinese companies already began to cut back on American imports in June. They still have two million tonnes of ordered goods that haven't been shipped out yet, and those orders might be cancelled in the future. We are pretty confident about China's soybean supplies going forward. The Belt and Road countries are increasing soybean production. Things like that will help fill in the supply gap when American soybeans vacate the market," said Wang Liaowei, senior economist at the China National Grain & Oils Information Center.
Experts say there's no need to worry about a soybean shortage because China is already looking for new suppliers in South America, Canada and Russia.
More than simply losing Chinese orders, American farmers also are suffering as soybean futures are trading over 20 percent lower since their peak in March of this year.