During the G20 summit last year, President Trump and China?s President Xi agreed to a cessation of further escalations in the trade war engulfing the two countries. This was a three-month move to allow both sides time to come to an agreement. The March 1st deadline is fast approaching.
The trade war between the two largest economies in the world has been going on since last summer. There have been talks on both sides of the Pacific in hopes of reaching an agreement. Both sides are meeting right now in Beijing. This includes U.S. Trade Representative Robert Lighthizer. The big question is what will President Trump do on March 1st? The President has said he will consider an extension to the hiatus on tariff increases if there is significant progress made toward a resolution. However, now he isn?t inclined to make the extension.
American Farm Bureau trade adviser Dave Salmonsen says this week?s negotiations could be a spark for more talks.
China has made a few goodwill purchases of U.S. soybeans. This is not enough to make up for exports we have lost due to this trade war. The administration is firm in its stance of China needing to commit to trade practice reforms before President Trump will meet with President Xi again.
