Re:China Once Looked Tough on Trade. Now Its Options Are Dwi...
by sonnyblarney on Wednesday September 19, 2018 @04:11AM
(#18022649)
Not quite.
The demand for Soybeans globally has not changed.
Tariffs in China really will just mean that buyers and sellers will shift around.
Chinese will now buy Soy from Brazil, thus avoiding tariffs, and rather than buying more expensive Soy beans from Brazil (because of more demand), those other buyers will shift to buy from the US.
Chinese tariffs on commodity goods won't have an effect if there a good number of buyers and suppliers.
The demand for Soybeans globally has not changed.
Tariffs in China really will just mean that buyers and sellers will shift around.
Chinese will now buy Soy from Brazil, thus avoiding tariffs, and rather than buying more expensive Soy beans from Brazil (because of more demand), those other buyers will shift to buy from the US.
Chinese tariffs on commodity goods won't have an effect if there a good number of buyers and suppliers.