U.S.-China Trade War on Hold, 90-Day Standstill Issued
UNITED STATES and CHINA - Washington and Beijing have declared a 90-day ceasefire in the trade war between the two countries, prompting speculation—and hope—that the escalating tariff tension between the two countries will come to an end.
According to a Business Insider report, in a sideline meeting at Saturday’s G20 Summit in Buenos Aires, Argentina, Chinese President Xi Jinping and President Donald Trump agreed to temporarily suspend plans that would more than double the rate of U.S. tariffs on a $50 billion in Chinese goods.
The deal also entailed China agreeing to buy more U.S. agricultural goods, and Trump was quick to tout the agreement as a victory for farmers.
“Farmers will be a a very BIG and FAST beneficiary of our deal with China. They intend to start purchasing agricultural product immediately. We make the finest and cleanest product in the World, and that is what China wants. Farmers, I LOVE YOU!” Trump tweeted on Monday.
Some farmers, though, according to Business Insider, may not be able to recoup their losses after the threat of a 25 percent tariff stymied markets, caused current crops to languish and rot in storage, and resulted in shifting supplier relationships, with China looking to Europe and Latin America for commodities they had traditionally purchased from the United States.
The threat of this 25 percent tariff has already permeated the greater U.S. grocery industry in a number of ways; the Wall Street Journal reported last week that major U.S. retailers—including Walmart, Amazon, Target, and Dollar General, are already shifting their tactics in an effort to indemnify themselves against rising costs. And Chinese buyers have already shifted to markets like Brazil as they looked to secure supply and avoid the eventuality of prohibitively expensive 25 percent duties.
And though Trump cast the accord as a victory, the New York Times has reported that the appointment of Robert Lighthizer—“a veteran trade negotiator with deep skepticism toward China”—to lead U.S. negotiations may bring about additional hurdles.
AndNowUKnow will continue to report with updates.