By Scout Nelson
Soybean farmers across the United States are struggling as global trade policies continue to shift. The government’s introduction of new tariffs, described as a “new chapter” in American trade history, has created instability in both domestic and international markets.
The U.S. Supreme Court is now reviewing the legality of these tariffs, leaving many producers uncertain about future rates and economic impacts. This lack of clarity has made it difficult for farmers and agribusinesses to plan long-term investments or manage operational costs.
According to Evert Van der Sluis, a professor of economics at South Dakota State University, frequent tariff changes have made the agricultural economy unpredictable. "Yes, we hear about these tariffs going up and down. We don't know the next morning when we get out of bed what really is the level of the tariff," Van der Sluis said. "But it's that very uncertainty, that up-and-down, that is creating this world that is unstable. It makes it really difficult for businesses to make any decisions."
Meanwhile, global developments have added more pressure. As Argentina faces an economic crisis, the U.S. administration has approved billions in aid to stabilize its economy.
The move allowed Argentina to lower export taxes on grain products, which encouraged China to purchase over a million tons of soybeans from Argentina instead of the U.S.
Van der Sluis explained that China has been strengthening its trade infrastructure in South America since early 2000s fluctuations in soybean prices.
He noted that the United States may have overestimated its position in the global trade network, while other nations have diversified their supply chains.
He emphasized that trade systems are adaptable, but building new trade relationships takes time. For now, U.S. soybean producers continue to face market disruptions, slower exports, and reduced profitability due to the ongoing uncertainty in global trade policies.
Photo Credit: istock-zhaojiankang
Categories: South Dakota, Crops, Soybeans, Government & Policy