Argentina has decided to join the "game," signing 15 major deals with China overnight. If Trump does not make adjustments, he will lose the support of the "rednecks"!
Recently, the Argentine government decided to implement temporary tax measures, officially abolishing the export tariffs on its own grain, in order to enhance the competitiveness of Argentina's soybeans and other agricultural products in the international market, which is essentially joining the competition for the Chinese market for soybeans and other agricultural products. It aims to seize a certain market share before the US and China reach a new trade agreement.
A trade source revealed that on the night when Argentina abolished the export tax, Chinese buyers had already pre-ordered 15 batches of goods from Argentine companies, including at least 10 ships of soybeans.
The entry of Argentina is bound to impact the export of American soybeans. It should be noted that China has always been an important market for American soybeans. However, after China imposed additional tariffs, American soybeans lost their original competitiveness, and the price has now exceeded that of Brazilian soybeans. If Argentina also uses tax reduction measures to enhance its price advantage, it will be even harder for the United States to maintain its share of the Chinese market.
If the United States loses the Chinese market, American soybean exporters and farmers will face a series of difficulties. After all, no country can replace China in the import of soybeans.
These agricultural workers are basically supporters of Trump's "rednecks." If Trump does not make adjustments to ensure their economic interests, many "rednecks" may turn to support the Democratic Party or stop voting altogether.
Original article: www.toutiao.com/article/1844050718728256/
Statement: This article represents the views of the author.