Crops News

Update on China talks and increase in soybean purchases


Following the second round of talks between U.S. and Chinese negotiators on a deal to de-escalate the trade war, President Donald Trump updated the American people alongside U.S. and Chinese officials. 

According to a statement from the White House, “The two sides showed a helpful willingness to engage on all major issues, and the negotiating sessions featured productive and technical discussions on how to resolve our differences. The United States is particularly focused on reaching meaningful commitments on structural issues and deficit reduction. Both parties have agreed that any resolution will be fully enforceable.”

While progress has been made, much work remains to be done.  Trump reiterated the deadline of March 1, 2019, after which tariffs will increase if a deal is not reached.

China has agreed to purchase 5 million tons of soybeans per day as a sign of good faith while talks continue. Markets are climbing slowly as a reflection of the news. Trump said, “That’s going to make our farmers very happy. That’s a lot of soybeans.”

Tariffs Hurt the Heartland spokesman and former Congressman Charles Boustany said, “It’s not just the markets that are watching these discussions closely. American small businesses, farmers, retailers and manufacturers are watching these talks because they are the ones paying these tariffs. While it’s encouraging that progress is being made, the specter of continued tariffs or an increase to 25 percent in one month, looms large if you are a business or farmer. Not only does it mean money out of your pocket today, it means uncertainty in planning for the future.”

“We agree that trading partners should abide by the global trade rules. But broadly-applied tariffs aren’t the answer and they are making the problem worse for Americans. Next week, over 100 members of our coalition, including businesses, farmers and manufacturers from across the country will be fanning out across Capitol Hill to press lawmakers to ramp up pressure to end the trade war. Their message will be simple: these tariffs hurt American businesses and need to end now.

“Our hope is that as these negotiations shift to a potential leaders meeting next month we will finally see a deal that takes tariff increases off the table for good, ends the threat of new tariffs, and brings an end to the crippling tariffs we are facing now.”

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