During the G-20 Summit, Chinese President Xi Jinping and US President Donald Trump, came to terms to temporarily stop adding extra tariffs to respective goods. The policy will start in January and last for ninety days. A resolution that both parties agreed upon over dinner is a breather to resolve the on-going trade feud. This feud has resulted in a soybean price hike of 1.1 percent at the Chicago Mercantile Exchange.
Over the course of dinner, part of the agreement is that China will buy products from the United States including industrial, agricultural, energy and other products to lessen the trade imbalance between the two countries. White House also added in a statement that China is committed to buying agricultural goods to US farmers instantly.
Trade War Between Economic Giants
The trade war between these two economic giants has impacted soybean prices. China instigated a 25% tariff on soybeans coming from the US earlier this year. Because of the tax, the future of soybeans went down more than 10% in the past months.
Beneficial Agreement for the Farmers
With the agreement between the two countries, Trump happily tweeted on Monday how the deal will benefit the US farmers and how the American farmers provide the cleanest and premium products, just what China wants.
The Chief Investment Officer at Bleakley Advisory Group also shared his thoughts with the agreement between China and US. Peter Boockvar wrote how the US farmers been a sacrificial lamb for the feud. Despite the remaining 25% tax on the soybeans, for now, he’s happy for the US farmers.
