Release The Soybean Tariff Kraken!

Release The Soybean Tariff Kraken!

So despite assurances from Wilbur Ross that China's response to the Trump administration's Section 301 tariffs are "proportionate" and thus nothing to be alarmed about, markets were most assuredly alarmed. And the reason is simple. Here's how we described the flaw in Wilbur's "logic" earlier on Wednesday morning: But beyond that, Wilbur’s contention that China’s response “shouldn’t really surprise anybody” because it’s proportionate completely misses the point. This isn’t abou
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11 thoughts on “Release The Soybean Tariff Kraken!

  1. Indeed it hurts both producers and consumers. Perfect timing for Canada though and its vast farmlands, the world’s second largest, because Canada can/will plant lots of soybeans instead of wheat etc this spring. Seeding has yet to begin. Perfect timing for canada-china. The chinese are the largest visible minority in Canada, and are an outright majority in its wealthiest city, Vancouver. So china-canada relations are solid.

    No chinese tariffs or trade disputes for china & canada. They’re both doing TPP now. So Canada will say thanks to the US for ceding its market share to Canada on grain seeds. Ceding seeds, get it? haha. Doubt the US gets the huge chinese market back again if they lose it to canada. Really, really stupid move!

    1. Agreed. Don’t forget Russia is at peak wheat right now… can easily change to soybeans as well.

      My oh my… what better way to galvanize the rest of the world against you than to march into the sand box flipping everyone off, spewing amazingly narrow minded, short sighted, inflammatory sequences.

      “I am tired of not having the best sand! I used to have the best sand and I want it back! I want to sit where you are sitting – move over! In fact, you need to pay me for sitting in my spot. BTW, I am going to transform this sandbox and sit on the throne again…. No, wait! I’m too tired and fat to build my throne myself, so line up here to tell me how you are going to build it for me. Why isn’t everyone listening?! “ …. then, in a remarkable moment of self reflection, decides he must adjust his behavior….. … ‘yes. yes. …. must pull more levers!!’

      the dead don’t get to write the meglomaniac’s history, nor did they stand up in time.

    2. U S will prevail on the tree issue. Bunny you were all “. a’dither on the dollar sinking 2months back and now about U S losing out to Canada. Long view: T.he U S comes ahead 2 year from now. H’s hatred of all things Trump causes him o miss big picture. Always do enjoy your viewpoint though.

      1. First , thanks for the compliment.

        In fact, I’ve warned about a falling dollar for much longer than that, since early last year, and since I first posted on this site when the dollar still sported a 10 handle rather than an 8 handle. Also warned 2months ago about a dollar counter trend rally (up) before the next shoe drops. The dollar collapse isn’t over and it’ll be still lower for “2 years”. It’s being particularly crushed by Asian FX this year. “Long run” the dollar is going like the pound before it. Won’t be reserve currency in 10-15 years, maybe sooner because trade deficits are essential to supply a reserve fx globally. But the Trumps don’t get it and could be the blame for loss of reserve currency status the way the Turmp admin has reinvented the dollar policy and is fixated on a trade deficit of physical goods – while ignoring its trade surplus in services which are a component of a total net trade balance deficit of ZERO (source: Project Syndicate).

        Also bullish on grains. So China putting tariffs on beans is dumb and ineffective if grain prices rise this year like I expect. As for Canada, it’s run by a liberal socialist government that pays farmers to grow nothing and “markets” for farmers – who are banned from selling their own product themselves rather than thru the gov’t marketing board – truly counterproductive like all things socialist, so it’s unlikely that Canada can take advantage of its golden opportunity to gain Chinese market share from US. I dunno who else could. Argentina? Russia? Ukraine, if it wasn’t a war-torn shithole, a legacy of the Obama admin.

    1. Then too bad he didn’t stay in the classroom. As those who can, do, those who can’t, teach.

      Dunno whether he can teach, but sure seems he hasn’t a clue about doing.

      He just fucked a whole lot of farmers and that supply chain. Probably for good if Canada gets it.

      But there’s still hope because the Chinese are not actually doing this, unless Trump continues.

  2. Random thoughts:
    I guess the Chinese will have to increase their subsidies to the industries and people affected. I wonder how the government will treat the Chinese companies that US companies were forced to partner with. Do you slap tariffs on those companies? I also wonder how much debt the Chinese will absorb to support their industries in a trade war since so much of their economy is state sponsored. Whether we use tariffs or even go so far as to put bans on their goods, I really think the Chinese have more to lose. Other suppliers of goods will be considered as an alternative and if our consumption has to change until this occurs, so be it. I’m a bit fed up with intellectual properties getting taken, uneven playing field in general on everything they do. They simply do not follow the same rules we do and they should. The training wheels should be off by now.

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