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China could get creative to work around soybean tariffs

A Farm Bureau official speculates the Chinese might get creative to secure U.S. soybeans now that the trade dispute is on hold.

Iowa Farm Bureau director of research David Miller says if China follows through on President Trump’s claim of major purchases of U.S. ag and energy products, commodity prices will likely rally.

“I think there’s enough future uncertainty ahead (that) we probably wouldn’t totally close the gap with where Brazil soybeans are.  But we don’t necessarily need to close that gap in the short run to be very beneficial probably to both countries.”

Speaking to Brownfield at the Iowa Farm Bureau annual meeting in Des Moines, he says one scenario involves China offering rebates to its soybean buyers to offset the tariffs.

“Where they’ll refund the tariff they collect back to the buyers effectively for the next 60 or 90 days, making the tariff non-effective if you will.”

China has not said if it plans to remove 25 percent tariffs slapped on U.S. soybeans in July.