The eastern Dakotas have rich farmlands which are now having the harvest season. The farmers of the country have fared well in the last two decades by sowing and reaping more and more of soybeans each year, essentially more than the any other country of the United States.
The soybeans so harvested are then shipped across the Pacific Ocean to China for feeding the Chinese pigs and chickens which has become the main source of prosperity for the farmers there.
But things have changed this year. It is because of the on-going trade war between the United States and China that Chinese this year have stopped buying soybeans from United States.
Dakotas is one of the largest market for largest exports of the United States, and the government of China has imposed tariffs on the soybeans of America. This action has been the reaction to the tariffs imposed by America on the goods of China.
The trade war between the United States and China began with America imposing a tariff on all the Chinese goods imported in the country accusing it of taking unfair means to create dominance in the market.
China has reverted with a set of tariffs for the American goods which were imported to China. America has reverted by an additional set of tariffs worth $250 billion on the Chinese goods which are imported to America.
As a result of this trade war between the two countries the export of soybeans from America has suffered a decline of 94 percent when compared to that of the previous year.
The general manager of the Arthur Companies, Mr. Kelvin Karel has initiated the piling up of about one million bushels of soybean from the harvest of the current year and there is a big chance for these bushels to rot in the country due to failure of export.
Source: TheNewYorkTimes, BusinessReport
