Trade War Fallout Could Remain for Years
China turns to new suppliers, may not fully return to U.S.
If history is any guide, the trade war with China will have lasting affects for U.S. farmers and their soybean crops, reports Bloomberg.
Donald Trump is set to meet Xi Jinping, his counterpart in China, at the G-20 summit and traders are optimistic for a resolution.
But a flashback to Richard Nixon’s 1973 soybean embargo and Jimmy Carter’s 1980 Soviet grain ban suggest that what’s already happened this year may lead to permanent changes ahead as China seeks alternatives to the U.S. market.
Nixon’s move spurred Japan to invest in Brazil’s then-nascent soy industry, setting the Latin America giant on a path to become the world’s top exporter. Carter’s ban was met with trade flow changes that rendered it ineffective and tarnished the U.S.’s reputation as a reliable supplier.
Read the full report here.