The Trump administration threw Argentina a financial life raft this week, and Argentina promptly responded by offering China an enticement in the form of untaxed soybeans.
It's a harsh blow to already struggling U.S. soybean farmers, and illustrates the complex implications of rescuing a close ally.
On Monday, Treasury Secretary Scott Bessent announced concepts for broad financial support to stabilize Argentina's economy, including potential loans, currency purchases and debt buying. Argentina's currency, the peso, rallied on the news.
Argentina, looking to rake in more capital, suspended its export taxes on several products Monday, including its 26% soybean tax.
That attracted China, historically the top buyer of U.S. soybeans, to Argentina. China doubled Argentine soybean purchases overnight Tuesday to 20 cargoes, following an uptick earlier in the week.
This further priced out U.S. soybean farmers, who are already grappling with a 20% tariff imposed by China on their soybeans.
Several industry experts and farmers told Axios they have received zero orders from China this year and that measures like this are hurting their profits. Most years, China buys more than half the soybeans grown in the U.S., per the New York Times.
"The soybean farmers have been screaming for assistance since we took office," a senior White House administration official tells Axios. "So this isn't new. And the president is going to help."
Posted by John3262005
3 Comments
Cucked I’m afraid
Why would Argentina have an export tax on soybeans do the locals love their soy milk and tofu?
Honestly, I respect the grift