
Washington, D.C. — In the latest escalation of the U.S.–China trade clash, President Donald Trump announced that his administration is considering terminating the trading of cooking oil with China as retaliation for Beijing’s sharp cuts in U.S. soybean imports. Trump characterized China’s move as an “Economically Hostile Act” that he claims undermines American farmers.
Trump argued the U.S. is capable of producing its own cooking oil and could thereby sever reliance on Chinese imports if necessary. The proposal immediately sent jitters through commodity markets and agricultural supply chains, particularly among exporters of soybean-derived products.
Bloomberg reports that even before Trump’s pronouncements, Chinese exports of used cooking oil to the U.S. were already declining, largely because importers anticipated increased trade friction. Used cooking oil is often used in biofuel production, and the drop in Chinese supply has ripple effects for companies that depend on that feedstock.
China’s pivot away from U.S. soybeans has been ongoing for months, with many Chinese buyers redirecting purchases to Brazil and Argentina amid tariff pressures. Now, Trump is signaling that China may face consequences beyond soybeans as the trade war broadens.
Analysts warn that a termination of cooking oil trade could escalate tensions and provoke countermeasures from Beijing, especially in agricultural sectors where both sides are deeply entwined. The full impact on U.S. farmers, biofuel producers, and global supply chains remains uncertain.
Sources & Links
- Trump Threatens China Cooking Oil Trade, Raising Tensions — Bloomberg Bloomberg
- Trump’s China Cooking Oil Feud Comes With Sales Already Falling — Bloomberg Bloomberg
- Trump Threatens China Cooking Oil Trade as Retaliation for Soybean Boycott — Bloomberg Bloomberg
- China pivots to Europe for used cooking oil exports as tariffs hit shipments to US — Reuters Reuters
- Trump mulls ending some trade ties with China, including in relation to cooking oil — Reuters Reuters
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