A sensitive national security message unexpectedly made headlines last week after Treasury Secretary Scott Bessent shared it publicly during the United Nations General Assembly.
The text, originally sent by Agriculture Secretary Brooke Rollins, revealed that Argentina was selling soybeans to China despite a U.S. trade deal requiring Buenos Aires to cut ties with Beijing.
The leak has sparked alarm because the soybean trade is crucial for midwestern farmers, a key voting bloc in Donald Trump’s base as the MAGA movement gears up for the 2026 midterm elections.
China’s Soybean Boycott Hits U.S. Farmers
Beijing, which traditionally bought at least a quarter of all U.S.-grown soybeans, is effectively boycotting American beans in retaliation for tariffs imposed during Trump’s presidency. Rollins’ text warned Bessent:
“Finally—just a heads up. I’m getting more intel, but this is highly unfortunate.
We bailed out Argentina yesterday (Bessent), and in return, the Argentines removed their export tariffs on grains, lowering prices, and sold a bunch of soybeans to China at a time when we would normally be selling to China.
Soy prices are dropping further because of it. This gives China more leverage on us.”
Rollins also shared a social media post from Iowa grain trader Ben Scholl, providing Bessent with additional market context.
U.S.-Argentina Financial Deal Adds Tension
The text leak comes on the heels of Trump’s meeting with Argentina’s President Javier Milei, where he offered a $20 billion financial lifeline amid Argentina’s struggling currency and dwindling reserves.
However, the aid was contingent on Buenos Aires ending an $18 billion currency swap line with China—a move Washington sees as a strategic risk that increases reliance on the yuan instead of the U.S. dollar.
Complicating matters, just days before the Trump-Milei meeting, Argentina temporarily suspended export taxes on soybeans, triggering a surge of orders from China and driving U.S. soybean prices lower, further straining midwestern farmers.
The Importance of China’s Soybean Market
Since the 1990s, American farmers have relied heavily on China’s demand for protein-rich soybeans, which are essential for oil extraction and animal feed.
While China produces soybeans domestically for foods like tofu, it imports far more than it grows—over 105 million metric tons in 2024, compared with 20 million metric tons produced domestically.
This dependence has given China significant leverage over the U.S. market.
When Trump launched his trade war in 2018, China turned to Brazil, which now accounts for more than 70 percent of its soybean imports, while the U.S. share fell to just 21 percent, according to World Bank data.
Growing Geopolitical and Economic Risks
The shift of soybean trade to Brazil, Argentina, and other South American countries not only hurts American farmers but also increases China’s influence over U.S. neighbors.
As South American countries diversify exports to boost food security, Washington faces a mounting challenge: safeguarding both the economic interests of domestic farmers and broader geopolitical influence in the region.