Trump threatens China with cooking oil embargo over soy refusal

President Donald Trump said Tuesday his administration plans to “end business with China on cooking oil” in retaliation for Beijing’s refusal to buy U.S. soybeans.

China is committing an “economically hostile act” by “deliberately not purchasing our soybeans and causing hardship for our soybean farmers,” Trump said in a Truth Social article.

Ending business with China on cooking oil and “other elements of trade” are possible forms of “retaliation” that Trump has said he is weighing.

“As an example, we can easily produce cooking oil ourselves, we don’t need to buy it from China,” he wrote.

China has been by far the largest buyer of U.S. soybeans, importing some 27 million metric tons worth nearly $12.8 billion in 2024 alone.

But amid a simmering trade war with the Trump administration, Beijing has not purchased a single American soybean since May.

With retaliatory tariffs imposed on American products making soybeans more expensive for Chinese importers, China instead sources its supplies from producers in South America.

One such supplier is Argentina, which reportedly suspended export taxes on the same day the Trump administration first pledged to support the country’s economy with a $20 billion currency swap.

Argentine President Javier Milei visited Trump at the White House on Tuesday, hours before the US leader launched his latest salvo against China.

Meanwhile, Chinese exports of used cooking oils hit record levels in 2024, with the United States accounting for 43% of the total.

Trump’s social media post follows a recent series of critical remarks he made about China, raising questions about the status of ongoing trade negotiations and sending stocks up and down.

The S&P 500 stock index fell immediately after Trump’s release, ending the trading day in the red after a volatile session.

Stocks fell Friday after Trump threatened to massively raise tariffs on Chinese imports in retaliation for new export controls China imposed on rare earth minerals. Later in the day, Trump announced he would impose additional 100% tariffs on Chinese imports starting November 1.

But on Sunday, Trump appeared to soften his attack, writing: “Don’t worry about China, everything will be fine!” »

Stocks rebounded broadly on Monday.