China’s Finance Ministry announced today the country will raise tariff rates on $60 billion worth of U.S. products, an expected trade war escalation after the U.S. increased import taxes on Chinese goods Friday.
The optimism coming out of the White House and USDA for a U.S. deal with China to end the trade war has been growing for months, but the rosy outlook dimmed this week because of a new rift between both countries’ negotiators.
The Trump administration resumes negotiations with China this week in pursuit of an elusive trade deal, while Congress returns from its two-week Easter recess with a long to-do list that includes a disaster aid bill that is stalled in the Senate.
President Donald Trump highlighted the importance of getting Japan to lower its tariffs on U.S. farm commodities as the two countries hash out a bilateral free trade agreement, a deal he said is progressing very rapidly.
The World Trade Organization today sided with the U.S. in its complaint that China has not lived up to pledges it made nearly twenty years ago to buy billions of dollars of wheat, rice and corn through tariff rate quotas.
If American almond, citrus, pork, apple and dairy farmers want any chance of regaining their markets in China, Mexico and Canada, U.S. steel and aluminum tariffs will likely have to be lifted. The problem, however, is the threat of cheap foreign metal flooding the U.S. market is now as high as ever.