These times we live in certainly are exciting.
But then, in Elementary School, I hid under my desk so a Nuclear Bomb couldn’t get me.
That was also exciting!
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Seriously Robert, what concessions do you expect to see from China ?
Human rights, allegedly ending of slave labor, changes in IP,…?
What is your minimum thing here to count this as a win in concessions from
China.
I’m expecting, at best, a pledge by China, to purchase some agreed to
amount of agricultural produce. The quantities will not be huge, but a marginal
bump. And it will only be a pledge to buy so many tons.
But how does the U.S. compare to other beef exporting countries in the Chinese market?
Figure 1 shows the value (in billions) of China’s beef imports by major
Figure 1 shows the value (in billions) of China’s beef imports by major exporting source: Argentina, Australia, Brazil, New Zealand, Uruguay, United States, and Rest of World . Rest of World is an aggregation of all other countries. Note that Chinese imports of U.S. beef products in 2022 were $1.7 billion, making China a leading destination market for the U.S. From the Chinese perspective, however, this was about 10% of China’s total imports, making the U.S. China’s 4th leading supplier ahead of Australia ($1.5 billion, 9%) and New Zealand ($1.4 billion, 8%). The figure shows that South American countries are more dominant in the Chinese market (Argentina – $2.5 billion, 15%; Uruguay – $1.8 billion, 11%). This is especially true for Brazil. In 2022, China imported nearly $7.0 billion of beef products from Brazil. No other country comes close (40% of China’s beef imports). What’s interesting is that both Brazilian and U.S. beef were banned in China due to animal disease issues (e.g., FMD, BSE). While the U.S. recovery since 2017 has been noteworthy, Brazil’s recovery since 2014 has been quite extraordinary.</
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I have to buy one for my mom, my wife, my mother-in-law, and another one for each for my son to give them. Thank goodness my wife stopped talking to her sister or we’d have to buy her a card too.
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Didn’t see this coming. Seems overly simplistic to be that quick. Can’t wait for Mr Wonderful’s reaction.
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Literally this seems impossible.
I’m not that surprised. Trade wars and tariffs are terrible for the economy. We are on the edge of things getting ugly and both sides saw that.
A struggling economy (even a temporary one) is catastrophic in politics (especially in US). I said a couple of weeks ago that something has to give and I thought it would be tariffs.
This level of speed makes me think this a pretty simplistic and minimal deal that everyone can have a victory lap.
Not judging actually everyone does that. But everyone realizes that while trade deals are good, all that “bringing the jobs back” has been strangled in the crib. Because then it’s simply 1000% easier to just raise the price to offset the reduced tariff.
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China has not put out much info. Those who may be cynical might say a positive statement at home is intended to ease and help move the stock market. Others might just say its market manipulation.
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Has the national emergency been solved already?
Indeed it has ! China will buy more US pork and beans when
they need it and it’s the lowest cost provider. Who could have
saw this dramatic breakthrough ?
Baseline tariffs (what we call reciprocal) down to 10% for both countries for 90 days to work on a deal. We are keeping 20% fentanyl tariff until improvements are made in that space and China is keeping retaliatory agriculture tariffs (based on original fentanyl tariff) in place until that is worked out. Hopefully we can close that out soon.
Still lots of work to do but this is great news for the economy and markets reacting as such. Hopefully this marks an end to massive trade wars and we can put the last 5 weeks behind us. We will see.
Biggest USA pork producer is Chinese owned
So we create a crisis, escalate things, then back down to where we were before the escalation and now, we take a victory lap after holding a gun to our economy? Does this also mean we are not bringing back jobs either?
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The seemingly stupid takes on here seem endless…and most are simply political in nature.
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Go ahead and point them out for debate… not just a drive by
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What has been agreed to, this agreement is for 90 days, during which time further trade discussions are expected but it is not a solution. The agreement does not address the underlying issues of the trade dispute, such as unfair trade practices and the US trade deficit which was the whole argument for starting this trade war from the beginning. Tariffs still remain a tax that is most often paid by the end consumer.
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Yeah, have a dialogue about the issues. Don’t drop opinionated personal attacks in a drive by.
I can understand someone not wanting to engage. But if that’s the case, just don’t. I will ask for those that can’t have a rational dialogue about the economic and market issues to not engage though.
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It would seem The USA is seeking to export goods and Energy to China under rules which are the same as we give to Chinese imports.
Our access to their Market is blocked. Via Tariffs, various rules, fees, etc., etc.
If we have a “level playing field” problem solved. Then May the best man win.
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Can you be more specific here ? Which tariffs on which products are you referring
to ? It’s hard to discuss with just generalities.
And what energy are we exporting exactly ?
For discussion, I’ll throw this link out there.
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTTEXCH1&f=M