This weekend Chinese President Xi Jinping promised to buy more U.S. farm goods in exchange for President Trump postponing another $300 billion in tariffs on Chinese goods. The announcement came after an 80-minute meeting this weekend at the G20 Summit in Japan, Ryan McCrimmon reports for Politico's "Morning Agriculture." Trump also promised to ease up on his trade ban of Chinese company Huawei, whose equipment many rural telecoms carriers rely on.
China bought about 544,000 metric tons of U.S. soybeans last week, the largest purchase since March. The move, along with the announcement, signals a renewal in trade talks, which had fallen apart in May. However, "China hasn’t fulfilled its previous promises to buy about 14 million tons of soybeans as part of prior short-term trade deals with Trump," McCrimmon reports. "And, as Bloomberg notes, a Chinese government summary of the truce makes no mention of renewed food and farm purchases." Nor does the agreement mention a deadline to conclude talks.
Postponing the tariffs will likely be a relief for U.S. businesses and consumers. Increased soybean sales to China would also be a big help to U.S. farmers, who "are on track to plant 80 million acres this year, the fewest since 2013, while stockpiles of the crop are swelling as a result of Trump’s trade war," McCrimmon reports. Prices have declined so much that farmers are losing money on the crop.
China bought about 544,000 metric tons of U.S. soybeans last week, the largest purchase since March. The move, along with the announcement, signals a renewal in trade talks, which had fallen apart in May. However, "China hasn’t fulfilled its previous promises to buy about 14 million tons of soybeans as part of prior short-term trade deals with Trump," McCrimmon reports. "And, as Bloomberg notes, a Chinese government summary of the truce makes no mention of renewed food and farm purchases." Nor does the agreement mention a deadline to conclude talks.
Postponing the tariffs will likely be a relief for U.S. businesses and consumers. Increased soybean sales to China would also be a big help to U.S. farmers, who "are on track to plant 80 million acres this year, the fewest since 2013, while stockpiles of the crop are swelling as a result of Trump’s trade war," McCrimmon reports. Prices have declined so much that farmers are losing money on the crop.
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