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Fact check: China imposed 125% tariff on US soybean

Checked on May 12, 2025

1. Summary of the results

There are conflicting reports about the exact tariff percentage. While one source confirms China imposed a 125% tariff on US soybeans on April 11, 2025 [1], another source indicates it was only a 10% tariff [2]. What's clear is that China has significantly increased tariffs on US soybeans, effectively more than doubling costs for Chinese processors [3].

2. Missing context/alternative viewpoints

The original statement omits several crucial pieces of context:

  • Historical Impact: During the 2018 trade war, similar tariffs caused US soybean market share in China to plummet from 60% to 18% [4]
  • Economic Projections: Academic studies predict:
    • US soybean exports to China could decrease by 50.8%-75.6% [5]
    • Both the US and China would suffer significant welfare losses [5]

  • Global Market Shifts: Brazil is emerging as the primary beneficiary:
    • Chinese processors are increasingly switching to South American suppliers [3]
    • Brazil is expected to increase production to meet demand [3]

  • Additional Measures: China has also suspended soybean import licenses for three US firms [2]
  • 3. Potential misinformation/bias in the original statement

    The original statement oversimplifies a complex trade situation:

    • Beneficiaries of this narrative:
      • Brazilian and South American soybean producers benefit from emphasizing US-China trade tensions [3]
      • US agricultural competitors gain market advantage from highlighting high tariffs [5]

  • Economic Impact: The statement focuses solely on the tariff percentage without acknowledging the broader economic implications for both nations [5]
  • Timeline Context: The statement doesn't mention this is part of an escalating trade dispute and was a retaliatory measure to US actions [1]
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