USA: Trump election reignites trade war with China and market uncertainty

Published Nov 9, 2024

Tridge summary

The article outlines the potential impact of a second term for US President Donald Trump on the global agricultural commodities market. Trump's protectionist policies, including his "America First" approach and a tendency toward bilateral agreements, could significantly affect the trade of agricultural commodities, especially soybeans. The author cites the previous trade conflict with China as an example, noting that Brazil and other major soybean exporters could potentially benefit from meeting Chinese demand if similar tensions arise again. The article also discusses the possible effects of Trump's policies on the value of the dollar, the oil and oil products market, and the global grain market, warning that his combative stance in trade negotiations could lead to market volatility.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Donald Trump’s victory in the US presidential election is expected to impact the agricultural commodities market, especially due to his protectionist approach, “America First” policy and preference for bilateral agreements. Soybeans are one of the products that are expected to suffer most from the change in leadership of the world’s largest economy. “If his second term repeats the previous guidelines, some specific dynamics can be expected,” says Élcio Bento, analyst and consultant at Safras & Mercado. The “trade war” with China during his previous administration is an example of a trade conflict that could resurface. Trump favored renegotiations of multilateral agreements, such as NAFTA, and promoted policies that directly impacted agricultural markets, such as the US withdrawal from the TPP (Trans-Pacific Partnership). “During the trade war, for example, China reduced its purchases of soybeans from the US and increased imports from Brazil,” the consultant recalls. “If similar ...

Source: CanalRural