Sep 13, 2019

China to suspend tariff hikes against U.S. pork and soybeans

Illustration: Rebecca Zisser/Axios

China is expected to suspend tariff hikes against American pork, soybeans and other agricultural goods ahead of trade talks between the 2 countries, per Chinese state-run media.

Why it matters: This follows President Trump's announcement earlier this week that the U.S. would delay the increase on existing tariffs on $250 billion worth of Chinese goods in an attempt to calm trade tensions. The moves may mean both sides could soon be ready to talk about "the prolonged dispute that is threatening global economic growth," writes AP.

The big picture: Both Chinese and American farmers have felt the resounding effects of the ongoing trade war.

  • American soybean bean farmers were strategically targeted by China, with oversupply and flooding exacerbating the issue. American soybean farmers rely on trade with China — the world's largest soybean importer.
  • Chinese pig farmers are also struggling due to an African swine fever epidemic that's caused prices to heavily increase, says AP. The farmers rely on soybeans to feed their livestock.

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China cancels U.S. farm visits while Trump holds out for a "big deal"

Trump meets in the Oval Office on Sept. 20. Photo: Saul Loeb/AFP/Getty Images

Trade negotiators from China cancelled visits to meet farmers in Montana and Nebraska on Friday, around an hour after President Trump said he was interested in a "big deal," not “a partial deal” with China, the Washington Post reports.

The big picture: The U.S. trade war with China has reduced U.S. employment by 300,000 jobs, compared with likely employment levels absent the trade war, Moody’s Analytics estimates. The National Foundation for American Policy estimates that tariffs will cost U.S. households $2,000 each by next year.

Go deeperArrowSep 20, 2019

Bigger is better in the U.S.-China trade fight

Illustration: Sarah Grillo/Axios

Scores of American small businesses are losing profits and wasting inventory in the U.S.-China trade fight. But the biggest and richest are coasting — in every sector.

What's happening: "Bigger guys, just by virtue of their size, can weather the storm better," says Tom Duesterberg, a trade expert at the Hudson Institute.

Go deeperArrowOct 10, 2019

Farm aid from Trump’s trade war has cost more than double the 2009 auto bailout

Photo: Sheng Jiapeng/China News Service/Visual China Group via Getty Images

Farmer subsidies from the Trump administration aimed at mitigating the effects of the U.S.-China trade war have reached $28 billion, about double the amount of money shelled out in the government bailout of Detroit automakers in 2009, Bloomberg reports.

Why it matters: Trump's bailout still doesn't cover all of the farmers' losses. The government has provided $973 million in aid to Iowa farmers during a trade war that is estimated to have cost them $1.7 billion in losses, according to Iowa State University researchers cited by Bloomberg.

Go deeperArrowSep 23, 2019