The Chinese soybean industry is reportedly skeptical that imports of US beans can be started back up with the flip of a switch, despite optimism following the trade truce.
Trump administration officials have suggested that renewing purchases of the products could happen immediately.
While trade talks are ongoing following the announcement of a tariff ceasefire last week, Chinese retaliatory tariffs slapped on imports of US soybeans are still in place.
“Who would dare to buy?” Jeffrey Xu, general manager at Hong Kong-based soybean broker Overseas China Investment Co was quoted by Bloomberg as saying. “China could purchase today, and Trump may change his mind the next day.”
The sentiment underscores how damaging uncertainty regarding trade policy is, and how little effect the tentative trade truce will have on contracts and investment before concrete progress can be confirmed.
Other analysts said that, while state-owned companies may start buying up US soybeans for state reserves, private firms would have to wait for the 25% tariffs to come down.