The latest in the Trade War between China and the U.S. is that it might be breaking.
On December 2, according toNPR, President Trump agreed not to raise tariffs on Chinese goods in the next 90 days, a break from his previous intention to raise the current tariffs to 25% on January 1.
On December 3,Reutersreported that U.S. soybean futures rose to their highest level since at least August, which seems to be based on a sound prediction, because on December 4,CNNreported that “China agreed to increase its imports of various U.S. products, with an early focus on agriculture.” Trump tweeted that farmers will be a “very BIG and FAST beneficiary of our deal with China,” according to CNN.
On the 5th, theWall Street Journal(WSJ) reported that Chinese officials “have suggested” that China will buy more U.S. farm products, such as soybeans.
That said, the 25% tariff on soybean imports is still up. The WSJ suggested that the Chinese government might offer rebates to soybean buyers, rather than removing the tariffs altogether.
The WSJ also reported that the Trump administration has said it would raise tariffs to 25% if China and the U.S. fail to make a deal, but that Trump has tweeted that there is a possibility for extension.