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Report: China Could Ax Extra Tariffs On US Farm Products

Tanzeel Akhtar

China could remove the extra tariffs imposed on U.S. farm products last year in order to ease the way for importers to buy up to $50 billion worth of goods, according to Reuters.

At the same time, Bloomberg is reporting that China doubts a “long-term trade deal” is possible with U.S. President Donald Trump.

Earlier this month, Trump said China had pledged to spend between $40 billion and $50 billion on U.S. agricultural products annually as part of a deal to end the trade war.

It has been reported Beijing has stepped up buying of American soybeans and offered to boost annual purchases of soybeans from 20 to 30 million tonnes. The extra purchases would be equivalent to about $3.25 billion in orders at current rates.

Price Action

The iShares FTSE/Xinhua China 25 Index (NYSE: FXI) was trading down 0.6% at the time of publication and the SPDR S&P 500 ETF Trust (NYSE: SPY) was trading down 0.7%. 

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