The United States and China have agreed to a truce to the on-going trade war. At the conclusion of the G20 Summit on Saturday, President Trump announced his administration would hold off on higher tariffs of 25-percent on $200 billion worth of Chinese goods scheduled to kick in January 1. At the same time, China will immediately lift trade barriers on U.S. products, including agricultural goods. American Soybean Association President John Heisdorffer says this is good news for farmers.
The White House also states China will agree to purchase a not yet agreed upon, but very substantial amount of ag, energy and industrial products from the U.S. China has agreed to start purchasing ag products from U.S. farmers immediately. Heisdorffer says they are hopeful the final amount will be at least close to normal annual purchases of soybeans.
There is a 90-day deadline to work out an agreement on issues like intellectual property and non-tariff barriers. If the two countries can’t come to terms, the president will raise tariffs to 25-percent. Heisdorffer says failure is not an option with this agreement.
He admits longer term the U.S. soybean industry may never get back 100-percent of the China market.
