https://www.cnbc.com/2019/08/05/china-reportedly-halts-us-agricultural-imports-in-retaliation-for-trumps-tariff-increase.html
China reportedly halts US agricultural imports in retaliation for Trump’s tariff increase
KEY POINTS
- China has halted imports of U.S. agricultural products, Bloomberg News reported.
- Last week, Trump announced the addition of 10% tariffs on another $300 billion in Chinese goods after Trump said China didn’t follow through with its promise to begin purchasing farmers’ products.
- Trump has ordered up a $16 billion aid package to U.S. farmers to help them during the trade battle.
A farmer pulls a planter through a soybean field at a farm field near Buda, Illinois.
Daniel Acker | Bloomberg | Getty Images
China has halted imports of U.S. agricultural products, Bloomberg News reported, citing people familiar with the situation.
This hits at a sensitive issue for President Donald Trump. The president claimed that he had secured large quantities of agricultural purchases when he met with President Xi Jinping at the G-20 summit in June. China then didn’t follow through with those significant purchases according to Trump, leading him to announce the addition of 10% tariffs on another $300 billion in Chinese goods last week.
Trump has ordered up a $16 billion aid package to U.S. farmers, believed to be an important group for him politically, to help them during the trade battle.
China is waiting to see how trade negotiations proceed before committing to any purchases, Bloomberg News said.
China claimed the accusations that they didn’t start buying agricultural products are “untrue,” Dow Jones reported Monday.
In another possible retaliation, China allowed its currency, the yuan, to breach the 7 level vs. the U.S. dollar.
Shares of Deere and Caterpillar fell in premarket trading.
Read the full report here.
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