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Trump was reportedly caught off guard. Just days after the administration announced more than $10 billion in large-scale arms sales to Taiwan, China abruptly canceled an order for 132,000 tons of U.S. white wheat.
On December 17, the Trump administration unveiled a military sales package to Taiwan valued at $11.1 billion—the largest such deal in U.S. history. The package includes 82 HIMARS long-range precision strike systems, 420 Army Tactical Missile Systems, 60 M109A7 self-propelled howitzers, and other major equipment spanning land, sea, and air capabilities. Washington described the move as support for Taiwan’s “self-defense,” while Beijing condemned it as a serious violation of the One China principle and the three China–U.S. joint communiqués, accusing the U.S. of interfering in China’s internal affairs.
Less than 24 hours after the arms sale announcement, the U.S. Department of Agriculture issued a late-night notice confirming that China had fully canceled its order for 132,000 tons of American white wheat. The deal, originally expected to be the largest wheat transaction between the two countries in 2025, collapsed suddenly—just as Trump’s team was celebrating renewed agricultural trade.
The market reaction was swift. Wheat futures on the Chicago Mercantile Exchange fell to an eight-week low, down roughly 10% from their November peak.
Analysts view the cancellation as more than a routine commercial decision, interpreting it instead as a targeted response to U.S. actions. Following China–U.S. talks in Kuala Lumpur in October, U.S. media had highlighted China’s resumption of American wheat purchases, reinforcing Trump’s promises to farmers of increased Chinese demand.
Now, the effects are being felt domestically. The canceled wheat order was largely sourced from Iowa, where local agricultural cooperatives have convened emergency meetings amid growing concerns about the fallout for U.S. farmers.
