Reports are indicating the U.S. and China are getting close to a trade deal. March 27 has been set as the date for a meeting between the leaders of the two countries. President Donald Trump has also asked China to drop tariffs on all U.S. ag products since the President did not raise tariffs on March 1. Speaking at Commodity Classic on Friday Ag Secretary Sonny Perdue says he cautiously optimistic about an agreement with China when the two Presidents meet but reiterated that Trump won’t accept a deal that isn’t good for the American people.
Perdue says U.S. ag exports could reach record levels with Chinese imports possibly doubling or tripling under a deal. He says there are also a wide array of products that will be on the purchase list, beyond just soybeans.
The Secretary is also hopeful the Section 232 steel and aluminum tariffs will be lifted soon so the USMCA can move forward. He says tariffs are effective as a leverage tool or for enforcement, but they are no longer needed against Canada or Mexico.
Officials in the U.S., Mexican and Canadian governments have all stressed that they are unlikely to ratify the trade treaty without the removal of those tariffs.
