Trump Faces Pressure from Farmers Ahead of Xi Summit

US farmers are urging President Donald Trump to persuade Chinese President Xi Jinping to scrap its retaliatory tariffs on American farm goods and solidify purchasing commitments. Soybeans, sorghum, and other US farm products are expected to be high on the agenda at this week's summit between Trump and Xi. The US soybean industry has been struggling due to the 10% tariff imposed by China, making it harder for US goods to compete with cheaper supplies from Brazil.

China has been able to meet its import needs in part with shipments from other suppliers such as Brazil, while demand from elsewhere for US crops has remained resilient. Analysts say a win for US agriculture looks unlikely, with the two sides expected to recommit to previous crop purchase targets without inking any new deals.

The American Soybean Association and the National Sorghum Producers have sent letters to Trump urging him to push for a 'concrete and enforceable annual commitment' from China to buy 5 million to 7 million metric tons of US sorghum. In the longer term, US farm groups are urging the Trump administration to work towards a less turbulent agricultural trade relationship with China.

The US Department of Agriculture has confirmed nearly 10 million metric tons of US soybean sales to China from this year's crop, while traders and analysts believe at least half of the 6 million tons of sales reported to undisclosed destinations represent purchases by China. China has yet to purchase any US corn for the current season, but recent large purchases of corn and sorghum from Brazil suggest it has an appetite for imports.