USA is one of highest Soya Bean producer and China is highest importer of Soya Beans. As trade war going on USA and China, in order help farmers in USA, USA government should buy the Soya Beans at reasonable prices from farmers and try to manufacture food products which can be preserved for more period and export to other countries.
If Farmers goes into distress, it will even create issues for Trump in upcoming elections.
USA government should take all initial care that farmers should get comfortable price to the crop of Soya beans and should not get impacted by China and USA trade war.
Post imposing tariffs by China on USA on 75 Billion USD products, Dow Jones had lost 623 points. Actually Dow Jones lost 623 points because of 2 reasons and happened at the same time. First reason is China imposed tariffs on 75 billion USD on USA products and at the same time Powell speech related FED interest rate cuts is not favourable. Two things happened within hours of gap resulted in Dow Jones losting about 623 points.
Monday morning China stock markets will be in deep trouble. Main reason is tariffs on 250 billion USD products of China, USA is going to increase tariffs from 25% to 30%. Also tariffs on another 300 Billion USD which is going to effective from Sep 1st is increased from 10 percentage to 15 percentage but from a different date.
Monday morning will be really tough time to China stock markets.
If USA government not addressed the farmer problems of soya beans, it will be problem for Trump in next elections. Separate body with 10 members should be appointed to address the soya beans farmer issues.
Other alternative is USA government is post buying soya beans from farmers, they should set up manufacture units in other countries where manufacturing costs will be less and then manufacture food products. Then export to needed countries.
USA government can choose countries like India where manufacturing costs are less. As Soya Beans are high protein food, partly can be consumed in India if India government plans to feed them as part of lunch for school kids.
Powell meeting and China increasing tariffs happened in hours of difference looks to be strategic to increase pressure on Trump.
As USA has strong economy, helping Soya beans farmers is not a big job so that pain of trade war will not reach Soya Bean farmers. Decisions to be taken quick by USA government to help Soya Bean farmers in USA.
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