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US President Donald Trump announced on social media this week that he is considering blocking imports of cooking oil from China.

This decision comes in response to China's recent cessation of all purchases of US soybeans, a situation Trump described as an “economically hostile act” against American farmers.

In a post on Truth Social, Trump asserted: “I believe that China purposefully not buying our soybeans, and causing difficulty for our soybean farmers, is an economically hostile act".

He continued: "We are considering terminating business with China having to do with cooking oil, and other elements of Trade, as retribution. As an example, we can easily produce cooking oil ourselves; we don’t need to purchase it from China.”

Trump's statements have already begun to reverberate through the agricultural sector, with oilseed and related agriculture stocks experiencing significant gains.

Companies like Australian Oilseeds Holdings surged over 260%, while Sadot Group climbed by 90%. Other notable increases included Origin Agritech Limited at 42%, and Bunge Global rising by 15%.

These market reactions reflect investor optimism regarding potential shifts in US agricultural policy and the prospect of increased domestic production.

The backdrop of this announcement is the escalating trade tensions between the US and China. The trade spat intensified this spring when Beijing halted soybean purchases, redirecting its imports to Argentina and Brazil.

This shift has resulted in significant losses for US soybean farmers, with estimates suggesting a quarter of their market has been lost due to these trade dynamics.

Trump’s latest comments appear strategically timed as he prepares for a meeting with Chinese President Xi Jinping, scheduled for November 10 on the sidelines of the Asia-Pacific Economic Cooperation leaders summit in South Korea.

The president also threatened to impose a 100% tariff on all Chinese goods starting November 1, following China’s recent restrictions on rare earth exports.

For the food and beverage industry, these developments signal potential volatility ahead. Companies that rely on soybean imports for cooking oils and animal feeds must prepare for potential disruptions in their supply chains.

Increased domestic production of cooking oil could offer opportunities for local suppliers, but it may also foster greater competition within the sector.

As the agricultural market braces for potential policy shifts, stakeholders will need to closely monitor the evolving trade landscape and its implications for pricing, availability and strategic sourcing of key ingredients.