Beijing Considers Axing Extra Tariffs on U.S. Ag Products

The head of a government-sponsored trade association in China says Beijing could remove extra tariffs on U.S. farm goods to smooth the way for importers to potentially buy up to $50 billion in products.

The president of the China Chamber of Commerce for Import and Exports of Foodstuffs said, “What the government can do is remove the extra tariffs, which both sides need to do. Then, let the companies make purchases based on their own will and market rules.” The chamber president says that would create conditions for a convenient and “good” trade environment, rather than creating obligations for firms to buy a certain amount of product during a certain time.

A Reuters article says Beijing would make that move instead of directing importers to purchase specific amounts of goods. President Donald Trump said in October that China would be buying anywhere between $40 and $50 billion worth of agricultural goods as part of a “Phase One” deal to pave the way for an end to the trade war that broke out in 2018. However, that number has become problematic as China wants to purchase U.S. ag products based on market conditions, rather than commit to a specific number.