China Adds US Farm Goods to Tariff Exclusions

China plans to exclude American farm goods, including soybeans, from tariffs in the latest move to ease trade tensions before the two countries restart trade talks next month.

The Chinese Ministry of Commerce said Friday that China welcomed President Donald Trump’s decision to delay tariffs by two weeks and said it will exempt U.S. agricultural products such as soybeans and pork from additional tariffs.

These farm goods add to the 16 types of U.S. products that will be exempt from tariffs.The exemption will be valid for a year through to Sept. 16, 2020.

The move came after Trump said Thursday that he would consider an interim trade deal with China, even though he would not prefer it.

China’s agriculture buying has been a sticking point in the trade battle as Trump has repeatedly accused China of not following through on its promises. China said Thursday that domestic firms have started making inquires about prices of U.S. soybeans and pork. Chinese importers reportedly bought a total of 600,000 metric tons of soybeans from U.S. Pacific Northwest export terminals for October to December.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza