United States Trade War With China and the Effect on the Soybean Market in The United States

Abstract

The purpose of this study was to examine the buildup of a trade war between China and the United States. Specifically, looking at the soybean industry in the United States. The study will break down the economies of the two countries and look at the soybean industry in both of them. Next it will analyze the how and why the events that led to the trade war. The analytical section of this paper uses a welfare analysis approach to examine the winners and losers of international trade. These welfare analyses will be focused on the soybean industry in the United States. These analyses will demonstrate that the American soybean farmer did not win in international trade and that they lost a lot of profit due to the policies that Donald Trump imposed.