China to tax United States soybean imports 25%: ministry

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"And they can go elsewhere for their wheat". One of the main targets was a 25 percent tariff on soybeans.

But, he says that doesn't matter. China retaliated with a long list of US products it would tack an equal tariff to, including corn, beef, pork and soybeans.

Farmers are used to coping with the unknown - much of their job depends on factors outside of their control, like the weather.

"We'll probably lose nearly all of the business to China", said Hurt. "The Chinese side will resort to the WTO dispute settlement mechanism and take corresponding measures of equal scale and strength against USA products in accordance with Chinese law".

"In light of China's unfair retaliation, I have instructed the [United States Trade Representative] to consider whether $100 billion of additional tariffs would be appropriate", the president said in a statement.

"It appears the Chinese are attempting to get the attention of the Trump administration by harming numerous people who voted for the president in the first place", Gary Bailey, the commission's chairman and a farmer based in St. John's, said in a statement. "The presidential election is one of them".

China announced tariffs Wednesday against USA plans to apply US$50 billion worth of tariffs on 106 imports by issuing a list of USA goods including soybeans, whisky, beef, industrial chemicals and small aircraft in the escalating dispute.

Sylvain Charlebois, dean of the faculty of management at Dalhousie University in Halifax, said exporters will be cautious about trying to fill any US void in China because it takes time to develop channels and nobody knows how long the dispute will last.

China responded within hours by announcing $50 billion worth of tariffs on United States goods.

"Both countries are talking about tariffs, but at this point nobody's imposed any", said Rich Felts, president of the Kansas Farm Bureau. "And, with the 30 percent tariff, a 71 percent [drop in exports]". "So that would be another negative effect on the producers", said Diaz.

"Indiana produces steel, IN produces aluminum", he says.

"I think it'll just cause market confusion and a lot of hassle for the producers to figure out where the products are flowing", he said.

On top of this, there are threats of more tariffs to be placed on USA exports.

Todd Domer, a rancher and spokesman for the Kansas Livestock Association, said his industry looks toward China more for its potential than concern about market losses.

And experts say the timing couldn't be worse.

For some, the impact the tax could wreak on the US soy industry is too great to justify after futures fell near 5% in minutes and a report commissioned by the US Soybean Export Council said US exports to China could fall by 70%.

Beijing reported a trade surplus of $275.8 billion with the United States a year ago, or two-thirds of Beijing's global total. "So, that doesn't bare well". Business groups say companies feel increasingly unwelcome in China's state-dominated economy and are being squeezed out of promising industries.

He says with profit margins already thin for farmers, this could raise the prices for customers. And on top of that, he's paying more to replace equipment around the farm.

"We're kind of hoping it will be short lived", said farmer Roger Verhey. "Any new tractors obviously have steel as a component".

"We absolutely are willing to negotiate and not get into a trade war".