OMAHA (DTN) — The United States and China reached a partial trade agreement on Friday, following a series of meetings in Washington, D.C., between trade officials on both sides and a meeting on Friday between President Donald Trump and China’s top trade negotiator, Vice Premier Liu He.
The U.S. agreed to hold off on scheduled increases in tariffs on billions of dollars of Chinese goods in exchange for China expanding purchases of American goods, including agriculture products. China is expected to make between $40 billion and $50 billion in agriculture purchases.
In exchange, the U.S. has agreed not to raise tariffs on $250 billion of Chinese goods from 25% to 30%.
The two sides are expected to meet again in Chile in the next couple of months, according to press pool reports.
“Good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days. I will be meeting with the Vice Premier today. All would like to see something significant happen!,” Trump tweeted Friday morning.
“One of the great things about the China Deal is the fact that, for various reasons, we do not have to go through the very long and politically complex Congressional Approval Process. When the deal is fully negotiated, I sign it myself on behalf of our Country. Fast and Clean!,” Trump said in another tweet.
The U.S. exported 13.4 million metric tons (mmt) of soybeans to China in 2018-2019, down from 27.7 mmt in 2017-2018.
USDA said China bought 2.09 mmt of U.S. soybeans and 130,000 metric tons (mt) of U.S. wheat from Sept. 27 to Oct. 3. China has stepped up purchases of U.S. soybeans this year, totaling 4.79 mmt for delivery in the 2019-20 marketing year. That total was just 1.08 mmt at this time last year. China also has bought 142,000 tons of pork for 2019-20.
According to the American Farm Bureau Federation, U.S. agricultural exports to China have fallen from $19.7 billion in 2017 to $9.1 billion last year and were down another $1.3 billion in the first half of 2019.