FILE PHOTO: A man displays imported soybeans at a port in Nantong, Jiangsu province, China April 9, 2018. REUTERS/Stringer/File Photo ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. CHINA OUT.
BEIJING (Reuters) – China will need to drop its steep tariffs imposed on a range of American farm products earlier this year before it can fulfill its pledge to buy a “very substantial” amount of U.S. goods, said Chinese traders on Monday.
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China and the United States agreed on Saturday to refrain from setting additional tariffs that would further escalate a months-long trade war that has roiled global markets and halted sales of American soybeans to the world’s top buyer.
The temporary truce on trade followed talks between U.S. President Donald Trump and Chinese President Xi Jinping at the end of a two-day gathering of world leaders in Argentina.
United - States - Beijing - Amount - Energy
The United States said that Beijing had promised to buy an unspecified but “very substantial” amount of agricultural, energy, industrial and other products, with purchases of farm goods to start “immediately”.
But no substantial purchases can happen with a 25 percent duty still in place on U.S. soybeans, corn, sorghum and wheat, said buyers and analysts.
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“How can you buy U.S. products if China does not reduce the tariffs? We haven’t made any move yet,” said a trader with a major Chinese trading house. He declined to be identified as he was not allowed to be quoted by media.
China’s tariffs on U.S. soybeans had earlier pushed the price of soybeans from Brazil, the world’s top supplier, so high that Chinese buyers could have imported American soybeans and paid the tariff for less.
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