Trade Tensions Escalate: Trump Considers Ending U.S.–China Edible Oil Trade

2025-10-15

TradeTrade Tensions Escalate: Trump Considers Ending U.S.–China Edible Oil Trade Tensions Escalate: Tr

Trade Tensions Escalate: Trump Considers Ending U.S.–China Edible Oil Trade



2025

According to Reuters, U.S. President Donald Trump announced on Tuesday (October 14) via social media that his administration is considering ending certain trade activities with China, particularly those related to edible oils. Trump stated, “China is deliberately not buying our soybeans, making it difficult for our farmers. I view this as economic hostility. In retaliation, we are considering terminating trade with China involving edible oils and other related products.”
This marks another escalation in the ongoing U.S.–China trade tensions, which had already been strained by tariff hikes and supply chain disruptions. Analysts note that edible oil trade, including soybeans, corn oil, and related agricultural products, is one of the few remaining high-volume export links between the two nations. Any suspension could significantly affect global vegetable oil prices and pressure international food processing industries that rely on U.S. raw materials and Chinese refining capacity.
The U.S. soybean sector, heavily dependent on Chinese demand, has already faced volatile futures pricing in the Chicago Board of Trade (CBOT). A formal suspension could push producers to seek new buyers in Latin America or Southeast Asia, though logistical and pricing challenges remain. Meanwhile, China may accelerate imports from Brazil or increase domestic production to cushion supply risks.

Amid this uncertainty, shippers are advised to proactively review their export structure and impacted product categories, particularly orders involving oils, fats, oilseeds, agricultural products, and their derivatives. 

As the two largest economies in the world, the trade relationship between China and the United States is vital to both countries and the world economy. The two sides should resolve trade differences through dialogue and consultation.Hanyue International will closely monitor tariff developments while proactively developing alternative markets and backup supply chains to maintain resilience. By optimizing market presence and pre-designing alternative solutions, shippers will maintain flexibility and resilience amidst market fluctuations. For the latest information or customized response plans, please contact our customer service team.

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ump Considers Ending U.S.–China Edible Oil Trade

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