China just announced that it would not be adding additional tariffs to US agricultural goods such as soybeans and pork, marking a huge win for American farmers.
The superpower said via the state-owned Xinhua news agency that it would be encouraging Chinese companies to purchase more American agricultural goods after Trump delayed tariffs by two weeks in October.
This comes after a week of a thaw in the trade war after China initially removed tariffs from 16 American exports.
This was then followed by a delay in tariffs by Trump, moving the initial implementation of a 5 percentage point increase in tariffs on $250 billion worth of goods from October 1 to October 15.
Talks are scheduled to take place at the beginning of next month, where the two superpowers will be discussing the prospect of a new trade deal.
Xinhua said that the decision was taken by the Chinese Commerce Ministry and China’s economic development agency.
It wasn’t specified how much pork and soybeans will be purchased, but pork supplies have become a huge concern for China, due to the bout of African swine fever that has plagued China’s hog population.
Pork prices have also skyrocketed in recent months, with Bloomberg reporting a 47% increase last month. Bloomberg also reported that 87,771 tons of pork was purchased by China from the US this year.
China which is the world’s largest importer of both goods is heading into its holiday season, and worries have been rising that there would not be enough pork available ahead of its 70th anniversary as the People’s republic on October 1.
Meanwhile, soybeans have been a major talking point during the trade war, as farmers have suffered from China dramatically reducing exports of the protein. Soybean futures were up 1.2% at 7:00 am in New York on Friday after the news hit.