Trade talks seek to avoid new tariffs

Oct 11, 2019  | 2 min  | Ep4508

The U.S. and Japan officially signed a limited trade deal this week. The pact will provide a market for some American agricultural products cut-off from the Chinese market.

With the holiday season rapidly approaching, negotiations with the world’s number two economy had some movement at the end of the week.

Peter Tubbs reports. Producer contact peter.tubbs@iptv.org

U.S. and Chinese trade negotiators reached a tentative agreement this week, signaling progress in the 15 month trade dispute between the countries.

Multiple sources reported Friday that the Chinese agreed to additional purchases of ag commodities in exchange for a delay in tariffs that were scheduled to take effect on Tuesday, October 15th.  The $250 Billion in active tariffs were scheduled to rise from 25 percent to 30 percent.

The two sides are trying to reach agreement before tariffs kick in December 15th on $160 Billion of Chinese goods. These tariffs would be on top of $360 Billion in taxes that currently impact imported goods from China, and would, once enacted, tariff virtually every product the United States imports from their Asian rival.

China has stepped up purchases of American pork and grain in recent weeks, despite tariffs on incoming ag products that must be paid by Chinese importers. Retail prices for pork in China have been soaring due to African Swine Fever, which has forced the disposal of as much as half of the pig herd in China. Imports of American ag products still dramatically lag behind the pre-trade war pace.

Free-trade groups estimate that American consumers have paid $34 Billion in tariffs since the trade tiff began in February 2018.

For Market to Market, I’m Peter Tubbs

 

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