Economics
Trump Trade War Fallout Could Haunt U.S. Soy Farmers for Years
- Nixon embargo, Carter ban had lasting impact on crop markets
- China turns to new suppliers, may not fully return to U.S.
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If history is any guide, the trade war with China will have lasting affects for U.S. farmers and their soybean crops that the president won’t be boasting about.
Donald Trump is set to meet Xi Jinping, his counterpart in China, at the G-20 summit and traders are optimistic for a resolution. But a flashback to Richard Nixon’s 1973 soybean embargo and Jimmy Carter’s 1980 Soviet grain ban suggest that what’s already happened this year may lead to permanent changes ahead as China seeks alternatives to the U.S. market.