Friday, December 13, 2019

China to buy US$50 billion in US farm products in return for tariff concessions: Sources

A source briefed on the status of bilateral negotiations said the United States would suspend tariffs on US$160 billion in Chinese goods expected to go into effect on Dec 15 and roll back existing tariffs. In return, Beijing would agree to buy US$50 billion in US agricultural goods in 2020, double what it bought in 2017, before the trade conflict started, two US-based sources briefed on the talks said.

U.S. President Donald Trump meets with China's President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, June 29, 2019 The White House has agreed to suspend some tariffs on Chinese goods and reduce others in return for Beijing's pledge to hike purchases of US farm products in 2020, sources said on Thursday (Dec 12), taking a step towards de-escalating the trade war between the world's two biggest economies.

The US-China trade war has slowed global growth and dampened profits and investment for companies around the world.

The White House didn't release any official statement, raising questions about whether the terms had been agreed by both sides.

The United States has announced US$28 billion in subsidies for American farmers affected by the dispute.