China excludes US soy and pork from additional tariffs

China will exclude some US agricultural products from additional tariffs, China’s official news agency Xinhua reported on Friday (09/13), which is seen as the latest sign of easing Sino-US tensions before a new round of negotiations aimed at containing a trade war.

Washington and Beijing made conciliatory gestures. China has renewed purchases of US agricultural products, and US President Donald Trump has postponed tariff increases on certain Chinese products.

China had set additional tariffs of 25% on US agricultural products, including soy and pork, in July 2018. On September 1, China raised tariffs for soy by an additional 5% and another 10% for pork.

“China supports relevant companies today buying certain quantities of soy, pork, and other agricultural products in accordance with market principles and WTO rules,” Xinhua said, adding that the State Council of China Customs Tariff Commission would exclude additional charges on these items.

China has “broad prospects” of importing high-quality US agricultural products, Xinhua said, citing unidentified officials.

An outbreak of African swine fever has reduced China’s pig herd by a third since mid-2018, has brought pork prices up to record levels, and left China in need of overseas replacement supplies.

China is also expected to step up soybean purchases, historically the most valuable US agricultural export. The Asian country has shunned US soybean purchases since the trade war began last year.

Prior to the announcement of additional tariff exemptions, Chinese companies bought at least 10 US soybean shipments on Thursday, the country’s most significant purchases since June.

“The US is expected to live up to its words and fulfill its promise to create favorable conditions for cooperation in the agricultural areas between the two countries,” Xinhua said.

US and Chinese officials are expected to meet next week in Washington before talks between key trade negotiators in early October.

President Donald Trump said on Thursday that he prefers a comprehensive trade deal with China, but does not rule out the possibility of a provisional pact.

Source: Reuters

Sharing is caring!