Trump has now found himself in an uncomfortable spot: American farmers are howling over China’s refusal to buy US soybeans, a crisis that is hitting the Republican heartland the hardest.
On October 1, local time, Trump announced he was preparing for a “major topic of discussion” with President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) summit to demand that China restart its soybean purchases.
Trump vows a soybean showdown with Xi at APEC. (AP Photo)
Trump’s Social Media Bluster
True to form, Trump took to his own social media platform, Truth Social, to blame China for the farmers’ woes, claiming Beijing was using “negotiations” as an excuse not to buy. He declared his administration would direct part of US tariff revenues into subsidies for farmers while accusing former president Joe Biden of failing to enforce an earlier multibillion-dollar trade agreement with Beijing that promised more farm exports. Trump ended his rant with the slogan: “MAKE SOYBEANS, AND OTHER ROW CROPS, GREAT AGAIN!!”
The high-stakes APEC meeting will be held in Gyeongju, South Korea, from October 31 to November 1. Back on September 22, China’s Ministry of Foreign Affairs emphasized that Heads-of-state diplomacy plays an irreplaceable role in providing strategic guidance for the China-US relations. The presidents of China and the US maintain close exchanges and communication” and "The two sides are in communication”. However, “I have no information to share at the moment,” said the MFA spokesperson.
Trump’s fiery post sent ripples through the market. According to Bloomberg, US soybean futures spiked 1.9% before slipping back, their sharpest daily swing since late August.
The report also noted that only a day earlier, Republican senators vented their frustration during a meeting with US Ambassador to China David Perdue, warning that Beijing was unlikely to resume soybean purchases soon and blasting the lack of a long-term US strategy.
The problem for Trump is obvious: farming states, for long a Republican stronghold, are being hammered by the collapse of the export market. With federal subsidies shrinking, America’s rural communities are under immense strain—turning into a political headache for Trump’s party ahead of next year’s midterm elections. GOP lawmakers from the agricultural heartland are now pressing harder than ever for Trump to cut a deal with Beijing.
China Holds the Cards
As the world’s largest soybean buyer, China wields enormous influence. US Department of Agriculture data shows that by mid-September, weeks into the new sales year, China had not booked a single cargo of American soybeans—the first time this has ever happened since records began in 1999. Last year, China bought over $12 billion worth of US soybeans, accounting for more than half of America’s soybean exports.
But Trump’s go-it-alone tariff war has backfired badly on his own farmers. Traders note that suspending tariff hikes won’t help much when China still imposes a 23% duty on American soybeans. By comparison, Argentina and Brazil enjoy tariffs of only 3%. Argentina has even scrapped its grain export taxes temporarily, making its soybeans cheaper still.
China’s tariffs make US soybeans uncompetitive against Brazil and Argentina. (AP Photo)
Farmers Feeling the Pain
The White House has started to realize the political cost. On September 25, Trump promised reporters in the Oval Office that tariff revenues would be redirected to farmers, insisting they are “for a little while going to be hurt, until it kicks in, the tariffs kick in to their benefit,” and “Ultimately, the farmers are going to be making a fortune.”
Yet for America’s farmers, the promise of eventual benefits remains abstract, while their mounting losses are very real. Axios reported that farmers now face between $100 and $150 in losses per acre.
To add to Trump’s troubles, Bloomberg pointed out that his “tariff cash for farmers” scheme could collapse in court. His tariffs, imposed under emergency powers, were already ruled unlawful by a lower court. If the Supreme Court upholds that ruling, the federal government may be forced to refund tens of billions of dollars in collected tariffs—a devastating blow to Trump’s trade war narrative.
Deep Throat
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The US government on Tuesday, July 28 local time, announced a ban targeting new Chinese robots and inverters. Reuters reported that the Federal Communications Commission （FCC）updated its "Covered List" to include foreign-made "advanced robotic devices," such as humanoid and quadruped robots, as well as network-connected power inverters. Washington says the measure will shield US artificial-intelligence development from alleged national-security threats and bring manufacturing in critical industries back to the United States.
The FCC said the equipment could expose vulnerabilities in supply chains, potentially disrupting the US economy and national security. The agency also said the products could create cybersecurity risks and threaten critical infrastructure. FCC Chairman Brendan Carr said: "The FCC will continue to do our part to secure America's critical supply chains."
The United States has announced a ban targeting new Chinese robots and inverters.
The FCC measure applies only to new models of the affected equipment. It does not bar people from using existing devices, prevent retailers from selling already authorized models, nor affect federal procurement and use. But the FCC retains the authority to revoke approvals already granted to models sold in the US market.
Politico said the move fits two central priorities of Trump’s second presidential term. One is to curb China’s competitiveness in AI. The other is to prevent China’s clean-energy sector, already dominant globally, from continuing to rise.
An interagency group in the Trump administration concluded that the technologies could threaten US supply chains, according to the report. Its concerns include the possibility of triggering large-scale blackouts or enabling surveillance of US citizens.
The stakes rise as the United States builds AI data centers at scale. Analysts told Reuters that grid-connected inverters are becoming increasingly important because they link renewable-energy sources, battery storage, the power grid, and data-center facilities. A supply disruption or cyber intrusion could undermine data-center operations and the security of critical infrastructure.
Humanoid robots are also moving into industrial, research, and consumer markets. Because they carry cameras, sensors, and AI computing systems, US officials worry that foreign intelligence agencies could exploit the data they collect. They also fear malicious actors could seize remote control of the machines.
Four people familiar with the matter said the FCC is expected to exempt many non-Chinese suppliers from the restrictions. That would mirror recent US bans involving foreign drones and routers.
The robot ban is expected to hit China’s Unitree Robotics, according to Counterpoint Research. Unitree is a global leader in humanoid robots, holding nearly one-fifth of the worldwide market. The Pentagon recently added the company to its so-called “Chinese Military Companies List,” a move that could signal tougher US action ahead.
Unitree Robotics’ latest breakthrough humanoid robot.
Unitree recently partnered with Nvidia, which will use its advanced Blackwell chips to provide the “brains” for Unitree’s robots. Nvidia has said the robots’ data will remain in the United States. Unitree’s largest customers are US academic and research institutions.
Morgan Stanley analysts predict that the humanoid-robot market could reach $5 trillion by 2050. The Trump administration’s import ban may give US companies a competitive advantage.
Morgan Stanley analysts predict that the humanoid-robot market could reach $5 trillion by 2050.
The Washington Post said Trump’s sons have also entered the humanoid-robotics sector. They have invested in defense and robotics companies focused on US-based production.
The US government has spent recent years trying to reduce its dependence on Chinese-made equipment, citing national security.
The Chinese Embassy in the United States urged Washington to stop smearing Chinese companies and threatening them with sanctions. It said China would take all necessary measures in response to actions that harm Chinese interests.
A Chinese Foreign Ministry spokesperson has previously said that China firmly opposes the US side’s overbroad interpretation of national security, its creation of discriminatory lists under various pretexts, and its unjustified suppression of Chinese companies.
The spokesperson urged the United States to correct its erroneous practices and end its unreasonable crackdown on Chinese enterprises. China, the spokesperson added, will take necessary measures to firmly safeguard the legitimate rights and interests of Chinese companies.
