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China Softens Approach: US Soybeans and Pork Now Exempt from Tariffs

  • by Alan Hobbs
  • 1 Year ago
  • Comments Off

President Trump temporarily halted additional tariffs on China this week, and now China is seemingly returning the favor by lifting punitive tariffs on US soybeans and pork.

Xinhua News Agency reported the Middle Kingdom would not only suspend tariffs on soybeans and pork, but on an additional 16 categories of American products as well. The move is beneficial to both sides of the ongoing trade war as it not only boosts profits for US farmers, but will also relieve Chinese consumers of a recent epidemic of African swine fever which has forced pork prices to dramatically increase this year.

The US is both the biggest and lowest-costing exporter of soybeans worldwide. Some South American countries, such as Brazil and Argentina, are also big exporters of soybeans, but their output is not high enough to rival the United States just yet. Their prices are more expensive, too.

Still, experts are not optimistic about a larger China trade deal coming in the pipeline any time soon. At least not this year. We may see some additional de-escalation this fall though, as negotiations between the two countries are expected to continue in early October. Perhaps both sides will be more willing to engage in meaningful progress as the lucrative Christmas holiday and Chinese New Year are around the corner.

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