Both the United States and China have agreed to stop additional tariffs, according to reports from Reuters.
The deal prevents the current trade deal from escalating as both sides are hopeful for new talks resulting in an agreement within about three months. A working dinner with the Chinese president after the G20 Summit included President Trump, national security advisor John Bolton and Treasury Secretary Steven Mnuchin.
President Trump reportedly told Chinese President Xi Jinping that he would not boost tariffs on $200 billion worth of Chinese goods to 25 percent on Jan. 1 which was previously announced. Reuters notes that Beijing agreed to buy a “substantial” amount of agricultural, energy, industrial and other products. The two sides are also expected to address issues such as intellectual property, the transfer of technology, agriculture and cyber security.
If no deal is reached in the 90 day time frame, both sides agreed to a tariff raise from 10 to 25 percent.
Reaction from ag groups:
Lynn Rohrscheib, Illinois Soybean Growers (ISG) chairwoman and a soybean farmer from Fairmount, Ill., released the following statement in response to U.S. and China announcing continued trade discussions.
“As the nation’s top soybean-producing state, we are encouraged that talks are occurring between the United States and China leaders with hopes that our soybean market can be restored. Free trade and access to markets are critically important to producers’ livelihoods and profitability. We echo the need for the tariffs to be rescinded. We also need to see the promise of a Farm Bill delivered. Both will help to restore stability to the agriculture industry. Illinois producers have suffered irreversible damages and the impacts of this trade decision are long-lasting. We are hopeful that new discussions can lead to new breakthroughs that help us for the long term.”