Good Sign For US Farmers As Officials Travel To China To Try To Negotiate An End To Trade Wars
Economic advisory to President Trump, Larry Kudlow had an announcement on Tuesday. Kudlow revealed that an official delegation was in route to China to try to end the trade wars. The purpose of the delegation going to China is to activate stalled talks, and get China to start buying US products.
US Trade Rep Robert Lighthizer and Treasury Secretary Steve Mnuchin are hopeful the talks will be successful. Both in a joint statement reminded Beijing that they promised to buy more US agricultural products. They said it’s important that the Chinese government ‘makes good on all of their promises.’ Kudlow met with a group of reporters on Tuesday, saying ‘he thinks the talks will go smoothly’. He said, “As I read it, looks like there will be a trip to China.” He went on, “we hope strongly that China will very soon start buying agriculture products soon.”
Larry Kudlow Says It Will Be A Show of A Goodwill Gesture For China To Resume Trade
Kudlow, says China buying US agriculture products again, ‘will be a show of a goodwill gesture.’ Acc Bloomberg reported Lightizer will join a group of high ranking officials on an official trip to Shanghai on July 29. In fact, the group will try to negotiated an ending to a tariff that started over a year ago. The tariff resulted in back and forth fines between China and the US. Which resulted in devastating effects for US farmers, the full economic losses to US farmers is not yet known.
Last month President Donald Trump met with Chinese President Xi Jinping and discussed the tariffs. During the meeting the President agreed to put a halt to the remaining tariffs. There are still 300 billion dollars of Chinese exports that are at stake. Kudlow says he expects the Chinese agriculture purchases to resume after he meets with Chinese officials. Furthermore, Kudlow says, ‘I’m going to strike a note of hopefulness, we have to do the best for American farmers.’
Agriculture Secretary Sonny Perdue Says Farmers Will Receive $15 Per Acre
The same day the China trip was announced. Agriculture secretary Sonny Perdue said farmers will be helped out. Farmers are to receive $15 per acre to try to compensate for losses due to the tariff. There was also a little less than hopeful news coming for another Trump official. Wilbur Ross the US Commerce Secretary tried to minimize the prospect of China buying agriculture products again.
Wilbur said, “I”m not aware that the gate has opened to any significant level.” Trump who is running for reelection in 2020 depends on votes from the farm belt. US farmers have suffered greatly due to the tariffs. Soybeans are the countries are most lucrative export. In 2018 saw a 16 year low for soybean exports to China. Furthermore, economic advisers to the President told him, to end the trade wars before 2020.