President Donald Trump put into effect the first batch of $50 billion tariffs on China. The first batch comes into a form of 34$ billion tariffs with the rest $16 billion to be put into effect later down the line.
In response China retaliated swiftly with its own $34 billion tariffs on US goods. As a result the biggest market that was hit by this move was the soybean market.
After 2001 China opened up its economy to the global trade and had taken advantage of cheap US imports of soybeans and of other countries. Right now China imposes zero tariffs on countries such as India, Bangladesh and other Asian countries.
China was the biggest buyer of US soybeans, importing some $14 billion last year or about two-thirds (2/3) of American farm export to China.
To this end Chinese farmers that grow soybeans are looking optimistic, because the Chinese government will now give more subsidies to them, to cultivate more soybeans. The subsidies will range from $190-$320 per acre in comparison to the past that it was $150 per acre.
China is looking to add 1.6 million acres to its existing soybean acreage of 21 million.
This indicates that both countries want to strengthen their domestic markets by looking like they are at war and also satisfying their hard ball attitude toward one another, to their domestic audience.