While U.S. President Donald Trump has been vocally against protectionist policies and tariffs, this deal has led to U.S. steel producers being worried about the potential trade war with China.
Why China’s Trade Deal is Ending
As China’s population continues to grow and its economy expands, the country is becoming an increasingly important player on the global stage. In recent years, China has been working to increase its influence in international trade agreements. One of these agreements is the bilateral trade deal between China and the United States, which is set to expire this year.
The expiration of this trade deal could have major implications for the U.S. economy. The agreement has been credited with helping to boost U.S. exports to China and supporting American jobs. If the deal expires, it could lead to higher tariffs on U.S. goods exported to China and make it more difficult for American companies to do business in the Chinese market.
The end of the China-U.S. trade deal also comes at a time when relations between the two countries are strained over a number of issues, including the coronavirus pandemic and Beijing’s handling of Hong Kong’s pro-democracy protests. These tensions could further escalate if the trade agreement is not renewed.
It remains to be seen what will happen with the China-U.S. trade deal, but its expiration could have significant consequences for both countries involved.
What does this mean for US Farmers?
China is the world’s largest purchaser of soybeans, and the United States is the biggest supplier. The two countries had been locked in a trade war for more than a year, with each side imposing tariffs on the other’s goods. In December, they reached a “phase one” trade deal that included a Chinese commitment to buy an additional $32 billion worth of U.S. agricultural products over two years.
That deal is now set to expire on Sunday, and it’s unclear if China will make good on its promise to buy more American farm products. Beijing has said it will only do so if the U.S. meets its own commitments under the agreement, which include easing export restrictions on high-tech products and allowing Chinese companies greater access to the American market.
If China doesn’t follow through on its pledge to purchase more U.S. agricultural products, it could have a devastating effect on American farmers who have already been struggling amid the trade war. The U.S.-China trade dispute has cost American farmers billions of dollars in lost sales, and many have been forced to take out loans or sell their land just to stay afloat.
A failure by China to meet its commitments under the phase one trade deal could further hurt American farmers who are already struggling to make ends meet. The loss of sales to China would likely lead to lower prices for soybeans and other crops, putting even more financial strain on