Soybeans are getting whacked after Trump hits China with tariffs on $50 billion worth of goods

  • Soybean prices tumbled more than 2% Friday morning.
  • President Donald Trump announced the US will move forward with a 25% tariff on $50 billion worth of Chinese goods.
  • The move stokes fears that China will hit back with tariffs on soybeans.
  • Watch Soybean prices here.

Soybeans slid Friday morning as the Trump administration hit the world's biggest importer of soy with tariffs on tens of billions of dollars worth of goods, a move Beijing has said it will push back on with its own taxes on major American agricultural goods. 

Soybeans were down 2.38% to $9.04 a bushel at 8:45 a.m. ET. Futures for November delivery fell as much as 1.9% on the Chicago Board of Trade to the lowest level in nearly a year. 

President Donald Trump said early Friday the US will go through with threats to impose a 25% tariff on $50 billion worth of Chinese goods. The list of targeted goods includes technology products, especially those that are part of Beijing's Made in China 2025 initiative.

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Bruce Edler, 56, a farmer for 40 years, fills seed planters with soybean seed in Gideon, Missouri, U.S., May 16, 2018. Picture taken May 16, 2018. REUTERS/Shannon Stapleton
Farmer Jason Bean fills a soybean container at Bean and Bean Cotton Company in Gideon, Missouri, U.S., May 17, 2018. Picture taken May 17, 2018. REUTERS/Shannon Stapleton
Bruce Edler, 56, a farmer for 40 years, fills seed planters with soybean seed in Gideon, Missouri, U.S., May 16, 2018. Picture taken May 16, 2018. REUTERS/Shannon Stapleton
A soybean seeding tractor is replenished with soybean seeds in a field in Gideon, Missouri, U.S., May 16, 2018. Picture taken May 16, 2018. REUTERS/Shannon Stapleton
A soybean seeding tractor is replenished with soybean seeds in a field in Gideon, Missouri, U.S., May 16, 2018. Picture taken May 16, 2018. REUTERS/Shannon Stapleton
Carl Peterson, President of Peterson Farms and Seed, in his company's warehouse in Fargo, North Dakota, U.S., December 8, 2017. REUTERS/Dan Koeck
A worker takes a sample from an incoming truckload of soybeans at Peterson Farms Seed facility in Fargo, North Dakota, U.S., December 6, 2017. Photo taken December 6, 2017. REUTERS/Dan Koeck
A sample of clean, processed soybeans at Peterson Farms Seed facility in Fargo, North Dakota, U.S., December 6, 2017. Photo taken December 6, 2017. REUTERS/Dan Koeck
Samples of soybeans taken every hour during processing to monitor quality, are sorted for inspection at Peterson Farms Seed facility in Fargo, North Dakota, U.S., December 6, 2017. Photo taken December 6, 2017. REUTERS/Dan Koeck
Soybeans are sorted according to their weight and density on a gravity sorter machine at Peterson Farms Seed facility in Fargo, North Dakota, U.S., December 6, 2017. Photo take December 6, 2017. REUTERS/Dan Koeck
Technician Scott Guttormson checks the processing of soybeans on a gravity sorter at Peterson Farms Seed facility in Fargo, North Dakota, U.S., December 6, 2017. Photo taken December 6, 2017. REUTERS/Dan Koeck
Soybeans being sorted according to their weight and density on a gravity sorter machine at Peterson Farms Seed facility in Fargo, North Dakota, U.S., December 6, 2017. Photo taken December 6, 2017. REUTERS/Dan Koeck
A sample of soybeans sorted for inspection at Peterson Farms Seed facility in Fargo, North Dakota, U.S., December 6, 2017. Photo taken December 6, 2017. REUTERS/Dan Koeck
John Ziegler, plant manager at Peterson Farm Seed facility walks through a storage warehouse stacked with bulk tote bags of soybeans ready for shipment, in Fargo, North Dakota, U.S., December 6, 2017. Photo taken December 6, 2017. REUTERS/Dan Koeck
Soybeans grow in front of the Kentucky Utilities Ghent Generating Station, a coal-fired power-plant, along the Ohio River in Vevay, Indiana, U.S., September 22, 2017. Photograph taken at N38�45.502' W85�02.963'. Photograph taken September 22, 2017. REUTERS/Brian Snyder
John Weiss fears losing up to 50% of his soybean crops, which he had reported to the state board for showing signs of damage due to the drifting of Monsanto's pesticide Dicamba, at his farm in Dell, Arkansas, U.S. July 25, 2017. (Cotton is pictured behind him) Picture taken July 25, 2017. REUTERS/Karen Pulfer Focht
John Weiss pulls out some Pig Weed near his crop of soybeans, which he had reported to the state board for showing signs of damage due to the drifting of pesticide Dicamba, at his farm in Dell, Arkansas, U.S. July 25, 2017. Picture taken July 25, 2017. REUTERS/Karen Pulfer Focht
DWIGHT, IL - JUNE 13: Soybeans grow in a field on June 13, 2018 in Dwight, Illinois. The condition of U.S. corn and soybean crops in most regions is far outpacing last year's condition at this point in the season. (Photo by Scott Olson/Getty Images)
DWIGHT, IL - JUNE 13: Soybeans grow in a field on June 13, 2018 in Dwight, Illinois. The condition of U.S. corn and soybean crops in most regions is far outpacing last year's condition at this point in the season. (Photo by Scott Olson/Getty Images)
DWIGHT, IL - JUNE 13: Soybeans are loaded onto a truck before delivery to a grain elevator on June 13, 2018 near Dwight, Illinois. U.S. soybean futures plunged today with renewed fears that China could hit U.S. soybeans with retaliatory tariffs if the Trump administration follows through with threatened tariffs on Chinese goods. (Photo by Scott Olson/Getty Images)
DWIGHT, IL - JUNE 13: Farmer John Duffy (R) and Roger Murphy load soybeans from a grain bin onto a truck before taking them to a grain elevator on June 13, 2018 in Dwight, Illinois. U.S. soybean futures plunged today with renewed fears that China could hit U.S. soybeans with retaliatory tariffs if the Trump administration follows through with threatened tariffs on Chinese goods. (Photo by Scott Olson/Getty Images)
DWIGHT, IL - JUNE 13: Farmer John Duffy loads soybeans from his grain bin onto a truck before taking them to a grain elevator on June 13, 2018 in Dwight, Illinois. U.S. soybean futures plunged today with renewed fears that China could hit U.S. soybeans with retaliatory tariffs if the Trump administration follows through with threatened tariffs on Chinese goods. (Photo by Scott Olson/Getty Images)
DWIGHT, IL - JUNE 13: Farmer John Duffy (L) and Roger Murphy load soybeans from a grain bin onto a truck before taking them to a grain elevator on June 13, 2018 in Dwight, Illinois. U.S. soybean futures plunged today with renewed fears that China could hit U.S. soybeans with retaliatory tariffs if the Trump administration follows through with threatened tariffs on Chinese goods. (Photo by Scott Olson/Getty Images)
DWIGHT, IL - JUNE 13: Farmer John Duffy drives a load of soybeans to the grain elevator on June 13, 2018 in Dwight, Illinois. U.S. soybean futures plunged today with renewed fears that China could hit U.S. soybeans with retaliatory tariffs if the Trump administration follows through with threatened tariffs on Chinese goods. (Photo by Scott Olson/Getty Images)
DWIGHT, IL - JUNE 13: Farmer John Duffy loads soybeans from his grain bin onto a truck before taking them to a grain elevator on June 13, 2018 in Dwight, Illinois. U.S. soybean futures plunged today with renewed fears that China could hit U.S. soybeans with retaliatory tariffs if the Trump administration follows through with threatened tariffs on Chinese goods. (Photo by Scott Olson/Getty Images)
DWIGHT, IL - JUNE 13: Farmer John Duffy loads soybeans from his grain bin onto a truck before taking them to a grain elevator on June 13, 2018 in Dwight, Illinois. U.S. soybean futures plunged today with renewed fears that China could hit U.S. soybeans with retaliatory tariffs if the Trump administration follows through with threatened tariffs on Chinese goods. (Photo by Scott Olson/Getty Images)
DWIGHT, IL - JUNE 13: Farmer John Duffy loads soybeans from his grain bin onto a truck before taking them to a grain elevator on June 13, 2018 in Dwight, Illinois. U.S. soybean futures plunged today with renewed fears that China could hit U.S. soybeans with retaliatory tariffs if the Trump administration follows through with threatened tariffs on Chinese goods. (Photo by Scott Olson/Getty Images)
BLACKSTONE, IL - JUNE 13: Greg Lovins checks the quality of a load of soybeans being delivered to a Ruff Bros. Grain elevator on June 13, 2018 in Blackstone, Illinois. U.S. soybean futures plunged today with renewed fears that China could hit U.S. soybeans with retaliatory tariffs if the Trump administration follows through with threatened tariffs on Chinese goods. (Photo by Scott Olson/Getty Images)
Farmer Chris Crosskno watches as soy beans are loaded into his truck on Wednesday, Oct. 11, 2017, at his farm near Denton, Mo. Crosskno is busy harvesting all of his soy beans this month. (J.B. Forbes/St. Louis Post-Dispatch/TNS via Getty Images)
Farm worker Jamie Herron cuts and loads soy beans with his combine on Wednesday, Oct. 11, 2017, at Chris Crosskno's farm near Denton, Mo. Crosskno is busy harvesting all of his soy beans this month. (J.B. Forbes/St. Louis Post-Dispatch/TNS via Getty Images)
Truck driver Marion Howard watches soy beans load into his truck on Wednesday, Oct. 11, 2017, at Chris Crosskno's farm near Denton, Mo. Crosskno is busy harvesting all of his soy beans this month. (J.B. Forbes/St. Louis Post-Dispatch/TNS via Getty Images)
Soybeans are loaded into a truck during harvest in Princeton, Illinois, U.S., on Friday, Sept. 29, 2017. Soybean futures for November delivery rose 0.1% a bushel on the Chicago Board of Trade after falling as much as 0.5%, the lowest since September 13. Photographer: Daniel Acker/Bloomberg via Getty Images
Soybeans are loaded into a truck during harvest in Princeton, Illinois, U.S., on Friday, Sept. 29, 2017. Soybean futures for November delivery rose 0.1% a bushel on the Chicago Board of Trade after falling as much as 0.5%, the lowest since September 13. Photographer: Daniel Acker/Bloomberg via Getty Images
Harvested soybeans sit in a truck in Princeton, Illinois, U.S., on Friday, Sept. 29, 2017. Soybean futures for November delivery rose 0.1% a bushel on the Chicago Board of Trade after falling as much as 0.5%, the lowest since September 13. Photographer: Daniel Acker/Bloomberg via Getty Images
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Within the hour of the announcement, China said it will "immediately take measures of the same scale," according to Bloomberg. There isn't an official list of targeted goods out yet, but Beijing threatened earlier this year to impose a 25% tax on US soybeans.

Chinese officials have also warned that trade talks between the two countries, which have been going on since May, would be called off if the US moved forward with its tariff threats and that any economic achievements so far will "lose effect."

Prices of the legume have slid 12.7% since May 29 amid mounting trade tensions between the world's largest economies. For US soybean traders and farmers alike, any retaliatory response by China targeting the legume would come at a particularly challenging time. 

“This down move comes at a time when US farmers have already made their decision on whether to plant corn or beans," said Matthew Garber, a team lead for HC Technologies in Chicago. "Additionally, South American beans will be more attractive and decrease the demand for US soybeans. Hopefully the two sides can come to terms and end this trade war."

And China isn't the only major importer the US soybean industry has to worry about. Reuters reported Thursday that Mexican officials are mulling imposing tariffs on $4 billion worth of US imports of corn and soybeans. That's after Trump hit the EU, Mexico, and Canada, with hefty levies on steel and aluminum imports. 

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