The verbal jousting match between China and the U.S. now has the Chinese government accusing President Trump’s administration of hurting its credibility by acting erratically on trade.
U.S. Commerce Secretary Wilbur Ross is scheduled to be in Beijing on Saturday for talks regarding the U.S.’s $375 billion trade deficit with the world’s second-largest economy.
On Thursday, China announced it would be cutting tariffs beginning July 1 on imported goods from the U.S. According to the New York Times, this action is “a modest peace offering, without really giving up much.”
There still is on-again, off-again uncertainty in the commodity markets surrounding the China-U.S. trade relations tiff, adding pressure. Joe Vaclavik, president of Standard Grain, said this could be the fuel behind this week’s selloff.
“We’ve been back and forth with this trade war, and as recently as last Sunday, we had a truce and both sides agreed these tariffs would be no more and that talks would be ongoing,” he said on AgDay.