It's called supply and demand. The price on Brazilian soybeans has been rising for several months anticipating less supply from the US. Chinese importers will pay more for soybeans it was buying from the US and US metal fabricators will pay more for aluminum and steel it was buying from China.Nope, I did not say China would not pay more for Soybeans.And if Americans wants to pay more for steel and aluminum, let them.They'll always be able to sell them at a discount.
If China wants to pay more for Brazilian beans versus American beans, we can't stop them.
China pays more for soybeans and America pays for more for aluminum and steal and both countries lose. The issue then becomes who loses the most, pretty dumb move by Trump.
China pays more for soybeans
You just said they won't. What changed your mind?
You said they'd buy soybeans from Brazil.
Tell me again why tariffs on US beans would make Brazilian beans more expensive.
The side effect of tariffs are often forgotten. China produces lower quality soybeans at a higher cost than most countries. The effects of Chinese tariffs on imported soybeans will tend to stimulate soybean production in China. Similarly, the US import tariffs on Chinese steel and Aluminium will tend to stimulate US production of steel and aluminium, both of which are produced less efficiently in the US than a number of other countries. The bottom line is that tariffs encourage higher cost inefficient production.
Putting tariffs on exports encourages inefficiency production and higher prices while free trade encourages each nation to produce what it produces best.