Amid Tariff War, Trump To Meet Chinese's Counterpart Xi Jinping In 4 Weeks

U.S. President Donald Trump plans to discuss soybean trade with China's Xi Jinping amid ongoing trade tensions. The meeting is crucial for American farmers affected by China's sourcing from South America.

U.S. President Donald Trump announced that soybeans will be a key topic in his upcoming meeting with Chinese President Xi Jinping. The meeting is scheduled to occur in weeks. " Soybean Farmers of Country are being hurt because China, for 'negotiating' reasons only, not buying," Trump stated on Truth Social.

During the ongoing trade war between Washington and Beijing, Chinese importers have refrained from purchasing soybeans from the U.S.'s autumn harvest. This has resulted in significant financial losses for American farmers. Autumn is crucial for U.S. soybean marketing as fresh crops are harvested, but China has opted to source from South America instead, affecting U.S. prices.

Trade Tensions and Tariffs

The backdrop of these discussions is heightened US-China trade tensions. Washington intensified the conflict by increasing tariffs on Chinese imports to 145 per cent before Beijing retaliated with counter-tariffs and export controls. After negotiations in May, both countries eased measures; the U.S. reduced most duties to a 30 per cent baseline while maintaining fentanyl-linked and reciprocal tariffs.

In a recent call, Trump and Xi agreed to meet face-to-face in South Korea to address their trade conflict. This meeting will take place during the Asia-Pacific Economic Cooperation forum's last week of October in Gyeongju, South Korea. Trump also mentioned plans to visit China early next year, with Xi expected to visit the U.S. later.

Impact on U.S. Farmers

U.S. Senator John Hoeven of North Dakota expressed skepticism about China's timeline for resuming soybean purchases after a briefing with U.S. Ambassador to China David Perdue. "He didn't indicate to me sales are imminent," Hoeven said, emphasizing the need to maintain pressure until sales resume while supporting farmers.

Efforts to reduce trade tensions have raised expectations that China might increase agricultural purchases from the U.S., potentially as part of an agreement with Trump. "Right now, they're buying from South America and using that to try to put pressure on us in these trade negotiations," Hoeven noted.

Previous Trade Agreements

In his first term in 2020, he signed a trade deal with China promising tens of billions of dollars in U.S. agricultural purchases and expanded access to Chinese markets. However, China did not meet its purchase targets under this agreement and has since sought diverse food sources.

Liu Pengyu, spokesperson for the Chinese embassy in Washington, commented on the economic relationship: "The essence of China-US economic and trade cooperation is mutual benefit and win-win." Liu added that they hope the U.S. will work with China to implement important understandings reached by their leaders during a phone call.

The current tariff rate on Chinese imports into the U.S. stands at approximately 55 per cent following adjustments under a truce extended through November by both nations.

With inputs from agencies