No (Trade) Deal! China Wants Tariffs Removed Before Signing $50 Billion “Phase 1” Farm Package

Apparently, China will buy some US agricultural products, but not the amount President Trump wants. Here are the details…

Yesterday was full of conflicting information about the trade deal.

We discussed that, and we made note of the inconsistent reporting of this supposed “Phase 1” “Farm Package” yesterday during our live-stream.

In fact Mike and I spoke about many trade war topics, so be sure to catch the live-stream in its entirety below if you have not done so already:

We also discussed other current market news including the Fed’s restart of QE, the retirement crisis, corruption in banking, gold, inflation, and a whole lot more.

Today, Tuesday, we can see from reporting in Bloomberg that China isn’t quite ready to call it a done deal:

China will struggle to buy $50 billion of U.S. farm goods annually unless it removes retaliatory tariffs on American products, and doing so would require reciprocal action by President Donald Trump, people familiar with the matter said.

Beijing is willing to start purchasing more U.S. agricultural products as part of the “phase one” trade deal, but it is not likely to reach the $40 billion to $50 billion touted by Trump under current circumstances, the people said. The people asked not to be identified discussing the private negotiations.

The condition highlights how far apart Washington and Beijing remain, even after reaching the handshake accord touted by the U.S. last week. Washington had said China, which imported about $20 billion of U.S. farm goods in 2017, agreed to make large agricultural purchases in exchange for relief on upcoming tariffs. Beijing’s position makes a deal more complex than initially described.

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Under the terms of the partial trade arrangement, Chinese spending on U.S. farm goods will scale to an annual figure of $40 billion to $50 billion over two years, Treasury Secretary Steven Mnuchin said earlier. Beijing has in the past granted waivers so that its companies can buy U.S. farm goods without paying Chinese tariffs. It could do that again to get purchases started, the people said. However, waivers are seen as being impractical for volumes as large as $50 billion a year, one of the people said.

So what do we have?

On the surface, stuff isn’t really getting done regarding a trade “deal”.

But to little reporting, stuff is happening “behind the scenes”.

China lost control of the 2nd busiest US shipping port.

It was sold to an Australian investment firm.

China to Australia puts “America First”?

Not the last time that I checked.

Trade war’s far from its end.

And it’s not looking good.

I mean, after 2 years?

It is $50 Billion?

In crops?

Wow.

Stack accordingly…

– Half Dollar


 

About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

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