News trade war
China removes tariff on soy and pork from US
There are reports in Chinese state media that China is canceling import tariffs on, among other things, soybeans and pork from the United States. The trade war takes a surprising turn.
China and the United States will resume talks in October to find a solution to the lingering trade dispute. However, the superpowers seem to be of good will. For example, in the run-up to the talks, the United States decided to additional import duties, which would take effect from September 1, have to be postponed for the time being.
In a response, the Chinese Ministry of Commerce in the state media said it will waiver tariffs on 16 U.S. agricultural commodities (such as soybeans and pork). This exemption takes effect on 17 September and ends one year later. With this, the trade war takes a surprising turn, because China recently announced that the import tariffs on these products would be raised.
American pig farmers relieved
The 72% import tariff has hindered US pork exports in recent months. The National Pork Producers Council (NPPC) has therefore welcomed the alleged exemption. "If the rumors in the Chinese media are true, then that is the most welcome development," said David Herring, the chairman of the NPPC.
From a Chinese point of view, it is understandable that American pork is being exempted from the increased import tariffs. The outbreaks of African swine fever have reduced China's pig population by more than 25%. The pig prices are thus up to record highs increased. To maintain the availability of pork, China depends on foreign imports. For a long time, European meat exporters had a competitive advantage over the United States, but are now likely to see that decline.
Wouter Job
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