President Donald Trump’s claim that China is willing to address “agricultural structural issues” in a trade deal has the U.S. ag sector excited that real change may be coming to the U.S-China trading relationship beyond just increased commodity sales.
The United States and China have agreed to a tentative trade deal that addresses biotechnology and other key agricultural issues while substantially boosting U.S. farm exports, President Donald Trump said Friday.
As much as growers long for an end to the trade war with China, there are long-term threats to demand for corn, soybeans and other crops that could depress commodity prices for years to come and lead to calls for higher government spending, economists say.
The next round of high-level U.S.-China trade talks are on schedule for next month despite the White House axing Chinese plans for a key official to tour U.S. farms and processing facilities this week.
China cancels plans to send a goodwill delegation to Montana and Nebraska after U.S. and Chinese negotiators wrapped up talks this week in Washington, a precursor to high-level negotiations planned for early October.
China’s latest promise to reduce tariffs on U.S. soybeans and pork is being lauded as an olive branch ahead of new trade talks early next month, but China also needs more of the commodities to feed its people, according to industry and government analysts.