China Grain Traders Await Lower Tariffs Before U.S. Return
USAgNet - 12/05/2018
China will need to drop steep tariffs it imposed on a range of American farm products earlier this year before it can fulfill its pledge to buy substantial volumes of U.S. goods, said Chinese traders on Monday.
Reuters reports that China and the United States agreed on Saturday to a ceasefire in a months-long trade war that has roiled global markets and halted sales of U.S. soybeans to the world’s top buyer.
The United States agreed to put on hold a scheduled increase in tariffs on $200 billion of Chinese goods due to come into effect on Jan. 1, following talks between U.S. President Donald Trump and Chinese President Xi Jinping at a gathering of world
leaders in Argentina.
The White House said Beijing had promised to buy an unspecified but “very substantial” amount of agricultural, energy, industrial and other products, with purchases of farm goods to start “immediately.”
China’s tariffs on U.S. soybeans mean they are $60 per tonne more expensive than those from top global supplier Brazil, which is due to begin harvesting a record crop in a few weeks time.