Trump Issues New Threat Amid Escalating Trade Tensions With China

US President Donald Trump has said his administration is considering “terminating business with China having to do with Cooking Oil” in response to Beijing’s refusal to purchase American soybeans. In a post on his social media platform Truth Social on Tuesday, Trump described China’s actions as an “Economically Hostile Act” by “purposefully not buying our Soybeans, and causing difficulty for our Soybean Farmers.” He suggested that ending trade in cooking oil and “other elements of Trade” could serve as “retribution” against China. “As an example, we can easily produce Cooking Oil ourselves, we don’t need to purchase it from China,” he added. China has traditionally been the largest buyer of US soybeans, importing some 27 million metric tons, valued at nearly $12.8bn in 2024. However, amid a simmering trade dispute, Beijing has not bought any US soybeans since May.Also Read: 100% Tariffs on China – In Trump-Xi Clash, India Could Emerge as Winner The lack of Chinese purchases has been compounded by retaliatory tariffs imposed by China on American goods, which have made soybeans more expensive for Chinese importers. As a result, China has increasingly sourced soybeans from South American producers, including Argentina. On the same day the Trump administration pledged a $20bn currency swap to support Argentina’s economy, Argentine President Javier Milei visited the White House. In 2024, China’s export of used cooking oil had reached record levels in 2024. Of this, The United States of America had accounted for 43% of the total export. Trump’s post follows a series of critical remarks about China in recent weeks, which have raised questions about the status of ongoing trade talks and triggered volatility in financial markets. Following the announcement, the S&P 500 index fell, closing the trading day lower after a session marked by sharp swings. Last week, stocks fell sharply after Trump threatened to impose significantly higher tariffs on Chinese imports in response to new export controls on rare earth minerals. Later, he announced a potential 100% tariff on Chinese goods starting from 1 November. However, over the weekend, he appeared to temper his remarks, posting: “Don’t worry about China, it will all be fine!” The latest comments underline ongoing tensions between the world’s two largest economies and highlight the challenges facing US farmers reliant on exports to China.