The U.S. and China have announced a 90-day pause on the recent trade war.
A joint statement from the two countries says that the U.S. will reduce reciprocal tariffs on Chinese goods to 10% which, combined with a 20% duty on China regarding fentanyl, places Chinese imports at a minimum rate of 30%.
China, in return, reduced its retaliatory tariffs on U.S. goods to 10% and agreed to remove any non-tariff trade barriers and restrictions imposed on U.S. products following “Liberation Day” on April 2 when Trump announced his reciprocal tariff plan from the White House Rose Garden.
Prior to the announcement, the U.S. tariff on Chinese imports had climbed to 145%, while China’s retaliatory tariff on U.S. goods had risen to 125%.
The following ag leaders have issued statements following the trade announcement.
Caleb Ragland, President of the American Soybean Association (ASA):
“This is a big development and one we are very pleased to hear, yet the tariff that remains in place for U.S. soy is far from inconsequential: Products purchased from our competitors in Brazil and Argentina are not burdened with this extra cost. That means China will turn to South America first for its purchases and only buy U.S. soybeans when it absolutely must. Also important to note, the 90-day pause will end in August—right before our harvest season. We need the administration to continue its negotiations with China to find a long-term, sustainable solution that removes retaliatory tariffs and protects market access for our agricultural products.”
This article will be updated as we continue to receive more statements from U.S. ag organizations.
