China is stepping away from further U.S. farm imports and said it doesn’t rule out more tariffs after President Trump ratcheted up tensions with its biggest agricultural trading partner last week.
The Chinese government has asked its state-owned enterprises to suspend purchases of U.S. agricultural products, people familiar with the situation said. Also, privately run Chinese crushers that had received retaliatory-tariff waivers on American soybeans from Beijing have stopped buying the commodity due to uncertainty, others said.
Chinese buyers have turned to South American soybeans, and the Asian nation said it doesn’t rule out for now taxing American agricultural goods that were traded after Aug. 3, the Commerce Ministry said in a statement on its website. The ministry also confirmed relevant Chinese firms have stopped purchasing American agricultural goods.
President Trump on Thursday proposed adding 10 percent tariffs on another $300 billion in imports beginning Sept. 1, marking an abrupt escalation of the trade war between the world’s largest economies shortly after the two sides restarted talks.
Source: Bloomberg, Farm Bureau