China has reportedly told its commodity buyers to stop all imports of U.S. agricultural products. The move is in response to President Trump’s planned tariff increase announced last week in order to pressure China to reach a trade agreement.
China also announced the devaluation of its currency Monday, an action a Rabobank researcher told Bloomberg News is “among the worst-case scenarios.” China appears to be waiting out the upcoming November 2020 U.S. elections to see if the political climate in the U.S. will change.
The announcement Monday by China follows news that it was buying U.S. ag products, as promised in prior talks, just not at expected levels due to “market conditions.” China claims demand for soybeans is weak in the nation as African swine fever has reduced its hog herd and need for feed ingredients.
Trump administration officials claimed over the weekend that significant ag purchases may keep the U.S. from enacting the next round of tariffs, before China halted all purchases.