December 13, 2019
China to purchase US$50 billion in US agriculture products in exchange for tariff concessions: report
Sources say China will buy more US farm products in 2020 in return for tariff suspensions and reduction on Chinese goods valued at US$160 billion, reported Reuters.
The tariff suspensions on Chinese goods and roll backs are set to go into effect December 15, 2019, with China doubling its US$24 billion purchase of US farm products in 2017 (according to the US Department of Agriculture), before the trade war began.
Sources say "Phase 1" of the deal saw US negotiators offering as high as 50% tariff cuts and suspend upcoming tariffs that were supposed to be enforced by December 15, 2019.
Global growth has slowed following the protracted US-China trade war, with the US announcing US$28 billion in subsidies for its farmers affected by the trade war.
Half of China's 2017 US purchases were for soybeans, of which demand has fallen because of the African swine fever crisis affecting China.
Officials from China have urged the US to roll back tariffs beginning July 2018 on hundreds of billions of dollars in China imports.
Sources are awaiting official confirmation from the White House on the agreement.
Trade experts believe that China will set more tariffs for US goods and suspend talks until after November 2020, the next US presidential election if US President Donald Trump doesn't suspend the country's upcoming new tariffs on Chinese products on December 15, 2019.