Source: Rita Jane Gabbett, MEATINGPLACE, 12/3/18


President Donald Trump and Chinese President Xi Jingping have agreed to slow the escalation of tariffs as the two countries accelerate trade talks, the White House announced over the weekend. The two leaders met during the G-20 summit in Buenos Aires, Argentina.

On trade, President Trump agreed that on Jan. 1, 2019, he would leave the tariffs on $200 billion worth of Chinese products at the 10 percent rate, and not raise them to 25 percent at this time.

“China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries. China has agreed to start purchasing agricultural product from our farmers immediately,” according to a White House statement.

The two leaders agreed to immediately begin negotiating structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture.

Both parties agree that they will endeavor to have this transaction completed within the next 90 days. If at the end of this period of time the parties are unable to reach an agreement, the 10 percent tariffs will be raised to 25 percent.

Particularly hard hit by the tariffs has been the U.S. soybean industry.

“This is the first positive news we’ve seen after months of downturned prices and halted shipments,” said American Soybean Association President John Heisdorffer, in a statement.  “If this suspension of tariff increases leads to a longer-term agreement, it will be extremely positive for the soy industry. We want to begin repairing damage done to our trade relations with China, which has been essential to successful soybean exports for years.”

It is not yet apparent how U.S. pork exports to China will be impacted. Reuters reported last week that despite placing retaliatory tariffs on U.S. pork, China has recently increased its imports of U.S. pork, leading to speculation that the outbreak of African Swine Fever in China has raised concern about a future supply shortfall. 


For more stories, go to www.meatingplace.com.