China to exclude U.S. agricultural products from tariffs ahead of trade talks

China is planning to exclude U.S. farm goods, including soybeans, from tariffs in the latest move to relieve trade tensions before the two countries restart trade talks next month.

China’s Ministry of Commerce said on Friday that the country welcomed U.S. President Donald Trump’s decision to delay tariffs by two weeks and said it will exempt American agricultural products such as soybeans and pork from additional tariffs.

These farm goods add to the 16 types of U.S. products that will be exempt from tariffs.  The exemption will be valid for a year through to September 16, 2020.

The move came after Trump said on Thursday that he would consider an interim trade deal with China, even though he would not prefer it.

China’s agriculture buying has been a sticking point in the trade battle as Trump has repeatedly accused China of not following through on its promises. China said on Thursday that domestic firms have started making inquiries about prices of U.S. soybeans and pork. Chinese importers reportedly bought a total of 600,000 metric tonnes of soybeans from U.S. Pacific Northwest export terminals for October to December.

Source: CNBC