J.B. Forbes | St. Louis Post-Dispatch | TNS | Getty Images
Truck driver Marion Howard sees soybeans in her truck on Wednesday, October 11, 2017 at Chris Crosskno's farm near Denton, Mo.
A wave of Chinese tariffs on American goods is ready for enter effect on Friday as trade tensions between the two countries continue to intensify.
On the face of it, Beijing's decision to target commodities may seem like a strategic move: by definition, the products are interchangeable, so the Chinese market should be able to change its US Imports for people from another country. But that may not work as well for China, experts said.
"The image is a bit more nuanced," said Caroline Bain, principal commodity economist at Capital Economic research consultancy.
Take soy, for example.  United States exports constitute 40 percent of all soybeans traded internationally. China, meanwhile, imports around 60 percent of soy in the global market. In other words, the United States has been a major supplier to China, but Beijing's July 6 tariffs will include a 25 percent tax on US soy.
Brazil already supplies nearly half of China's soybean imports, and Chinese buyers are buying more and earlier from the South American country this year, Bain said.
And, in a sign that China plans to increase purchases of soy from other countries to work with US supplies, Beijing said it would eliminate import tariffs on feed ingredients including soy from five Asian neighbors, Reuters reported. , quoting the Ministry of Finance of China.
As expected, Chicago soybean futures prices have fallen by 6 percent since the latest round of trade tensions.
Although much has been said about the fall in soybean prices, the decline also traced a general decline in commodity prices due to fears about a global aftermath of a total trade war between Washington and Beijing. , Bain said in a recent note.