China Could Subsidize Agribusiness Buying in Trade Truce
With a trade truce delaying escalation of tariffs between the U.S. and China into March, there is an opportunity for Chinese businesses to buy U.S. agriculture products, writes David Geiger on KCRG.com. But China has imposed a 25% tariff on soybeans and a tariff of up to 60% on some pork products.
Dave Miller with the Iowa Farm Bureau doubts China will reduce tariffs during the trade truce, but there could be a government payment system that allows businesses to get the products they need particularly in soybeans.
Miller says, “I think the Chinese government could easily set up a program for 90 days to essentially rebate the tariff to their soybean buyers. And for 60 to 90 days essentially allow them to buy them at minimal or no tariff.”