Key Takeaways

• President Trump accuses China of waging an economic attack by not buying U.S. soybeans
• He threatens to cut the cooking oil trade with China as “retribution”
• The U.S. can produce its own cooking oil but may face supply challenges
• China bought about $12 billion in U.S. soybeans each year before 2025
• Farmers await possible bailout measures amid ongoing trade tensions

Trump Threatens Cooking Oil Trade Cutoff

In a recent post on his social media platform, President Donald Trump said he may end the cooking oil trade with China. He blamed the Chinese government for stopping its purchases of U.S. soybeans. According to Trump, China’s actions are an “economically hostile act.” This move could further strain ties between the world’s two largest economies.

Why the cooking oil trade matters

The cooking oil trade links U.S. soybean farmers to global markets. Soybeans are a major source of vegetable oil and animal feed. When China buys U.S. soybeans, it helps set prices for farmers here. Therefore, a halt in purchases can lower farm income. In addition, cooking oil made from soybeans affects supermarket prices everywhere.

How the threat began

First, President Trump imposed import taxes on Chinese goods. Then China stopped buying U.S. soybeans in 2025. Under normal conditions, China spent about $12 billion a year on these crops. However, in 2025 they bought none. Trump blamed that move on Beijing’s trade strategy. He warned that cutting the cooking oil trade could balance the scales.

Impact on U.S. soybean farmers

Soybean farmers have seen better days. Since China stopped buying, soybean prices dropped. Consequently, farmers face tighter margins. They worry about paying their bills and loans. Trump mentioned he might order a bailout to help them. Meanwhile, farmers wait for clear plans or funds from Washington.

Can the U.S. replace Chinese cooking oil imports?

The president said the U.S. can easily make its own cooking oil. That may be true in theory. However, large refineries currently rely on Chinese oil supplies. Building up domestic production takes time. Moreover, companies would need new equipment and contracts. As a result, food makers might face temporary shortages.

Reactions from the industry

Food manufacturers worry about price spikes. They say cooking oil is key for products like chips and salad dressing. If supply shrinks, consumers could pay more at the grocery store. Furthermore, restaurants might struggle with rising kitchen costs. Industry groups have urged both governments to find a solution.

What could happen next

First, the White House might formalize plans to block cooking oil imports from China. Then the Treasury and Commerce Departments would set rules. Companies would get a timeline to end their orders. In addition, the U.S. could boost support for soybean farmers. That could involve direct payments or new export programs. Finally, negotiations might resume once tensions ease.

Potential global ripple effects

A cooking oil trade cutoff could touch markets worldwide. Other countries that buy U.S. soybeans might compete harder for fewer supplies. Meanwhile, China could turn to Brazil or Argentina for cooking oil needs. Those shifts can reshape global trade flows. Also, investors in commodity markets will watch prices closely.

In short, cutting the cooking oil trade would mark a new stage in the U.S.-China standoff. While the U.S. can grow more soybeans, shifting production and trade routes takes time. Ultimately, farmers, businesses, and consumers could all feel the effects.

FAQs

Will ending the cooking oil trade hurt American shoppers?

Yes. Cutting the cooking oil trade could raise food prices. Supermarkets and restaurants may pass higher costs to shoppers.

How soon could the U.S. boost cooking oil production?

It depends. Expanding refineries and signing contracts could take months or years. In the short term, supply challenges may occur.

Could soybean farmers get a bailout?

Possibly. President Trump has hinted at aid for struggling farmers. Details on amounts and timing remain unclear.

Is this move part of the wider trade war?

Definitely. The cooking oil trade threat follows tariffs and countermeasures on goods both ways. Tensions have spanned multiple industries.