Tuesday, 02 January 2024 12:17 GMT

How Vietnam Could Ease Trump's China Soybean Pain


(MENAFN- Asia Times) On October 8 , Vietnam's Ministry of Industry and Trade confirmed that Hanoi and Washington are negotiating the 20% reciprocal tariffs and 40% transshipped product levy imposed on Vietnamese imports.

The talks come as the US intensifies its protectionist measures against Asian economies that have trade deficits with the US and as Donald Trump seeks a political win with American farmers, a key voting bloc ahead of midterm elections in 2026.

Meanwhile, American soybeans are piling up unsold across the Midwest. For Trump , selling them abroad isn't just a trade goal; it's a political necessity amid signs his tariff policy is hurting US farmers.

Few commodities are as politically charged as soybeans in America. They underpin the economies of swing states like Iowa, Illinois and Indiana, whose farmers helped elect Trump in 2016 and 2024, and whose frustration cost him in 2020.

When China retaliated against Trump's tariffs in 2018 by halting soybean imports, millions of tons of crops rotted in silos, forcing Washington to spend billions in farm bailouts. That crisis revealed a simple truth: soybeans are America's silent political barometer.

In 2025, Beijing appears ready to use the same tactic, curbing US soybean imports as leverage amid tense trade negotiations.

Trump, eager to avoid a repeat of 2018, is now weighing a $10 billion rescue plan for farmers. But the better political solution would be to find new buyers, not more farm subsidies. And that's where Vietnam quietly enters the frame.

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