China Eases Tariff Tension Amidst Trade War with the U.S.
China will suspend additional tariffs on U.S. goods and reduce duties on specific agricultural imports. Despite this, U.S. soybeans remain less competitive compared to Brazilian alternatives, impacting American farmers. A recent meeting between Trump and Xi Jinping offered hope for resolving trade tensions.
In a significant move to ease trade tensions, China announced a one-year suspension of the 24% additional tariffs imposed on U.S. goods in April, while retaining a 10% tariff. This decision was confirmed by China's Cabinet on Wednesday.
The State Council's tariff commission further disclosed plans to eliminate duties of up to 15% on certain U.S. agricultural products starting November 10. Despite this, U.S. soybeans still attract a 13% tariff, making them less favorable compared to cheaper Brazilian alternatives, which continue to dominate the Chinese market.
With the first U.S.-China trade war taking a toll on American exporters, a recent meeting between U.S. President Donald Trump and Chinese leader Xi Jinping in South Korea has sparked hopes of a resolution. Meanwhile, China's state-owned COFCO recently purchased three U.S. soybean cargoes, a gesture interpreted as an intent to avoid further trade escalation.
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