Trump Warns of Halting Cooking Oil Trade with China
President Donald Trump warned he may halt U.S. cooking oil trade with China after Beijing continued avoiding U.S. soybean purchases, escalating trade tensions and rattling markets. The S&P 500 fell on the remarks. The issue now hinges on upcoming Trump–Xi talks at the APEC summit, though prospects for easing tensions remain uncertain.
President Donald Trump has announced the possibility of ending trade in cooking oil with China, signaling a new escalation in the ongoing trade war between the two nations. This move reflects heightened tensions and potential economic repercussions, as the U.S. considers actions that could impact bilateral trade relationships and supply chains.
The S&P 500 declined in the final trading hours after a surge in trade tensions with China, as President Trump threatened to halt trade in cooking oil with China via a Truth Social post. This move was in retaliation after Beijing continued refusing to purchase American soybeans, escalating concerns over ongoing trade disputes. Co-host Joe Matthews highlighted the volatile nature of the trade negotiations, noting that market reactions have been unpredictable, with recent swings driven by the President’s tweets and official statements. Trump’s comments accused China of intentionally not buying soy, calling it an “economically hostile act,” and suggested potential business termination, although the specifics of such actions remain unclear. His remarks also touched on the possibility of domestic production of cooking oil, referencing the U.S. laws incentivizing renewable fuels, including used cooking oil, under the Inflation Reduction Act.
Looking ahead, the prospect of resolution hinges on upcoming diplomatic talks, with President Trump scheduled to meet Chinese President Xi Jinping at the APEC summit in Korea within a few weeks. Despite the heightened tensions, official channels from the U.S. government, including the treasury secretary and USTR, confirmed that the meeting remains on the agenda and has been assigned a specific time. However, whether these high-stakes discussions will soften trade tensions or lead to a resolution remains uncertain amid ongoing headline ping-pong and market unease.
Recently, former President Donald Trump issued a warning that he might cut off the cooking oil trade with China. This statement comes amid ongoing tensions over trade disputes and concerns about China’s trade practices. Trump expressed frustration over what he describes as unfair trading policies and sought to leverage economic pressure to negotiate better terms for the United States.
The potential halt in cooking oil imports could impact both nations’ economies and international food markets. China is a major supplier of edible oils, including soybean and palm oil, which are vital ingredients for food manufacturing worldwide. Any disruption could lead to increased prices and supply chain concerns, affecting consumers and businesses.
Trump’s warning signals a tough stance in ongoing trade negotiations. While the move might serve as a bargaining tool, it also risks escalating tensions and disrupting global trade flows. Both countries will likely weigh the consequences before taking any drastic actions.
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Source : Thailand Business News
