President Donald Trump on Tuesday said his administration is considering "terminating business with China having to do with Cooking Oil" in retaliation for Beijing refusing to buy U.S. soybeans.
China is committing an "Economically Hostile Act" by "purposefully not buying our Soybeans, and causing difficulty for our Soybean Farmers," Trump said in a Truth Social post.
Ending business with China on cooking oil and "other elements of Trade" are possible forms of "retribution" that Trump said he was weighing.
"As an example, we can easily produce Cooking Oil ourselves, we don't need to purchase it from China," he wrote.
China has been the top buyer of U.S. soybeans by far, importing some 27 million metric tons valued at nearly $12.8 billion in 2024 alone.
But amid a simmering trade war with the Trump administration, Beijing has not bought a single American soybean since May.
With retaliatory tariffs on U.S. goods making soybeans pricier for Chinese importers, China has been sourcing the crop instead from producers in South America.
One of those suppliers is Argentina, which reportedly suspended export taxes on the same day that the Trump administration first pledged to bolster the country's economy with a $20 billion currency swap.
Argentina President Javier Milei visited Trump at the White House on Tuesday, hours before the U.S. leader issued his latest salvo against China.
Meanwhile, China's exports of used cooking oil hit record highs in 2024, with the U.S. accounting for 43% of the total.
Trump's social media post follows a recent spate of critical remarks he has made about China, raising questions about the status of ongoing trade talks and sending stocks careening up and down.
The S&P 500 stock index fell immediately after Trump's post, ending the trading day in the red after a volatile session.
Stocks tanked on Friday after Trump threatened to massively increase tariffs on Chinese imports in retaliation for new export controls that China imposed on rare earth minerals. Later that day, Trump said he would impose an additional 100% tariff on Chinese imports starting on Nov. 1.
But on Sunday, Trump appeared to soften his attack, writing, "Don't worry about China, it will all be fine!"
Stocks broadly rebounded on Monday.
