The U.S. imposed a 25% tariff on $34 billion worth of Chinese goods shortly after midnight Friday, meeting with immediate, equal retaliation from Beijing.

 

President Donald Trump said the total amount of tariffs could swell to $500 billion over time, enough to cover everything the U.S. imports from China. But for American farmers, the opening salvo has already turned a once-profitable outlook into a challenging market.

 

"The tariff deadline arrived early Friday, U.S. tariffs went into effect, as expected, and investors are so rattled that November soybeans are trading up 3/4 cent in the early morning hours," DTN Analyst Todd Hultman said. "Obviously, there is something to be said for anticipation as the same November soybeans had already dropped over $2.00 a bushel from their high in late May. Friday's subdued reaction doesn't necessarily mean that soybeans can't go lower, because the U.S. is threatening to impose more tariffs against China. But it is fair to wonder if the bulk of the bearish damage has been done as far as the trade war is concerned," he added.

 

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