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China's consumers set to be collateral damage with soybean tariff

5 July 2018

Beijing is set to impose duties on U.S. soybean imports on Friday (July 6). Soybeans are considered one of the most powerful weapons in Beijing's trade arsenal because a drop in exports to China would hurt Iowa and other farm states that backed U.S. President Donald Trump. On the other hand, China has a huge demand for soybeans. The country gobbles up about 60 percent of globally traded beans to feed the world's largest livestock industry. So the move could inflict collateral damage on Chinese consumers, analysts and industry experts say. If Chinese companies take a hit then ultimately Chinese consumers, along with U.S. farmers, will be the losers in this trade war.