China To Allow Some Buys of U.S. Corn, Cotton and Pork Tariff-Free

11:15AM Jul 26, 2019
China Tariffs
US applies tariffs on China goods coming into this country, China retaliates.
( MGN )

Bloomberg reports the Chinese government has approved several of its companies to buy U.S. corn, sorghum, and pork without having to pay those big tariffs in place between the U.S. and China.

Bloomberg reports textile mills were given permission to purchase a total 50,000 tons of U.S. cotton without paying the 25% retaliatory duty. It says sources report a number of companies will also be exempt from the tariffs on American pork, corn, and sorghum.

Bloomberg also reports the move follows the approval of some 3 million tons of U.S. soybeans for purchase with tariff waivers.

This comes as U.S. officials prepare to travel to China again next week to take part in the first face to face talks since President Trump and Chinese President Xi Jinping agreed to a trade war truce.

Once again, Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer will be taking the lead in talks for the U.S., but this time the group will meet Tuesday and Wednesday in Shanghai instead of Beijing.

Mnuchin told reporters outside the White House on Thursday, "Well, it's good we're going.  We're going back there.  I think as you know we're going to Shanghai at their request.  There's some symbolic importance to them of the Shanghai Communique with Kissinger, so I take that as an important step that they really are sincere in wanting to move forward.  {It's} Very important to us.  They're back in the markets buying agriculture.  They've made those comments to us.  We want to see those commitments fulfilled.  My expectation is there'll be a few more meetings before we get a deal done, so I wouldn't expect we'll resolve all the issues, but the fact that we're back at the table at the direction of the two presidents is important to them".

Mnuchin warned there are still a lot of issues to be worked out between the two countries.

China Trade Update 072619