Friday, the United States and China announced they had reached a Phase One trade deal that includes a Chinese purchases. The U.S. Trade Representative’s Office says China agreed to buy $40 billion of ag and other goods annually in 2020 and 2021. Joe Schuele with the U.S. Meat Export Federation says they’re encouraged but are awaiting more specific details. Plus, the retaliatory tariffs that remain in place will continue to hamper trade.
The Chinese have yet to confirm the amount of the purchases, but he says the announcement is positive on the surface.
American Soybean Association Vice President Bill Gordon says he’s cautiously optimistic about the deal and wants to see annual purchases of U.S. soybeans by China.
The deal prevents the December 15 tariffs from going into effect. However, the 25 percent tariffs on approximately $250 billion of Chinese imports will remain. The 15 percent tariff on $120 billion of imports will be cut from 15 to 7.5 percent, 230 days after the agreement is signed.
