Fri Aug 23rd, 2019 at 09:35:05 PM EST
China started buying oil from Iran after Trump imposed sanctions on the country. So why is it so difficult for the USA to find another buyer for soybeans after China stops buying from the USA? (Quara digest)
China was buying oil from Iran long before Trump put sanctions on Iran. In fact, aside from attempting to bankrupt Iran, Trump's sanctions on Iran were also targeted to disrupt the Chinese & other BRICS economies that have been bypassing the US$ in international trade. China and most of northern Asia are dependent on imports of Middle Eastern oil. It is one of the reasons massive amounts of money is being spent on building pipelines to Russia's oil fields.
As for soybeans, USA farmers can easily sell their crops, the market is huge.
However, USA farms, by world standards, are grossly inefficient and the markets will most often not pay the price needed by USA farmers to make soybeans, corn, and other products economically viable (worth growing).
China doesn't buy from the USA by choice, it can buy cheaper and better quality product elsewhere. It buys from the USA to assist the USA balance of payments, in effect reducing the profitability of its sales to the USA (which happen to be four times bigger than what it buys from the USA).
Realise that the USA is a highly protected and highly subsidised economy. This fact is what makes the USA so vulnerable in trade negotiations and why Trump has imposed increased indirect taxes (tariffs) on the USA consumer, who are the only ones filling the Treasury's coffers, so Trump has the finances to ease the suffering he has caused USA farmers and manufacturers with his financially irresponsible economic policies.