China Stops 3 US Ag Firms on Soybeans

LINCOLN, Neb. (DTN) -- China launched retaliatory tariffs against a range of U.S. agriculture products on Tuesday as a 10% U.S. tariff on all Chinese imports went into effect.

In addition, three U.S. companies had their soybean export licenses to China suspended, according to the USDA's Foreign Agricultural Service.

The Trump administration's tariff on Chinese imports was immediately countered with a 15% tariff by China on other U.S. goods, including corn, wheat, cotton and chicken. China also slapped an additional 10% tariff on U.S. imports of soybeans, sorghum, pork, beef, aquatic products, vegetables, fruits and dairy.

China suspended the soybean exports from Minnesota-based farmers' cooperative CHS Inc., Louis Dreyfus Company Grains Merchandising LLC and EGT LLC, a joint venture between Bunge and Pan Ocean America.

"Recently, Chinese customs detected ergot and soybeans with seed coating agents in imported American soybeans," USDA said on Tuesday.

Also on Tuesday, China filed a lawsuit with the World Trade Organization (WTO) in response to the Trump 10% tariff.

The three companies did not immediately respond to DTN when contacted for comment.

Illinois farmer and National Corn Growers Association President Kenneth Hartman Jr. said in a statement the Trump administration needs to quickly resolve the trade issues.

"Farmers are facing a troubling economic landscape due to rising input costs and declining corn prices," Hartman said.

"We ask President Trump to quickly negotiate agreements with Mexico, Canada and China that will benefit American farmers while addressing issues important to the United States. We call on our trading partners to work with the president to resolve these issues so that we can restore vital market access."

Farmers Union president Rob Larew said the tariffs announced today by the U.S. and China would have "serious consequences" for U.S. farmers.

"Our farmers are the backbone of this country and they need strong, fair-trade policies that ensure they can compete on a level playing field -- not be caught in the middle of international disputes," Larew said in a statement.

"We are already facing significant economic uncertainty, and these actions only add to the strain. Trade policies must come with real, tangible protections for the farmers directly affected. We've heard there's a strategy in place -- now we need to see it. Promises alone won't pay the bills or keep farms afloat. Without a clear plan, family farmers will once again be left to bear the burden of decisions beyond their control and eventually, so will consumers."

Soybeans by far make up the largest volume of agricultural products exported to China in 2024.

U.S. exporters sent 27 million metric tons (mmt) of soybeans to China valued at $12.76 billion in 2024, according to USDA. That was followed by beef and beef products valued at $1.58 billion, then cotton at $1.48 billion.

In total, China was the U.S.'s third-largest destination for agriculture products valued at about $24.7 billion, according to the USDA.

Read more on DTN:

"Commodity Producers Brace for Impact: Trade Tariffs and Shutdown Risks Loom," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social platform X @DTNeeley

(c) Copyright 2025 DTN, LLC. All rights reserved.