The U.S. and China finally signed the phase one trade deal in Washington D.C. yesterday after a nearly 20-month trade war. Pro Farmer consultant Jim Wiesemeyer says the 86-page text did not list specific commodity details to avoid market distortion and he’s unsure if freight will be included in the values. However, the historic deal will be worth $80 billion over the next two years.
He says China will not drop tariffs on U.S. ag products, including the 25-percent tariff on soybeans and 60-percent punitive tariff on pork.
Wiesemeyer says conversely the U.S. will not drop existing tariffs until the phase two deal is done.
He says the text also details one of the most aggressive enforcement mechanisms he’s ever seen in a trade package.
