U.S. Agriculture Secretary: ‘The Ball Is in China’s Court’

Fredrick Soto
May 25, 2019

U.S. President Donald Trump said on Thursday that it's possible to include Huawei in some part of the trade deal with China.

"The plan we are announcing today ensures farmers do not bear the brunt of unfair retaliatory tariffs imposed by China and other trading partners", Perdue told reporters in a conference call.

Japanese firm Toshiba said later Thursday it had resumed shipment of all products to Huawei hours after announcing a temporary halt to check whether US-made parts were involved. In a news release, the American Soybean Association said that "a second round of financial support to offset farm losses is only a partial and temporary Band-Aid and not a permanent solution for soy growers who have lost their number one export market since tariffs were implemented by both countries". Based on last year's trade, that leaves about $45 billion in imports from the U.S. They didn't say "oh, you shouldn't do this because we're going to have a bad year" - because they've had 20 bad years if you really look if you take a look at those charts, way back, longer than that.

Negotiations between the United States and China have soured dramatically since early May, when Chinese officials sought major changes to the text of a proposed deal that the Trump administration says had been largely agreed.

"Domestically in the United States there are more and more doubts about the trade war the USA side has provoked with China, the market turmoil caused by the technology war and blocked industrial cooperation", Chinese Foreign Ministry spokesman Lu Kang said.

Trump's suggestion is likely to only encourage China's protestations that the Huawei ban is motivated by politics, not security.

Washington has slapped higher tariffs on $200 billion (157.36 billion pounds) in Chinese goods, prompting Beijing to retaliate, and effectively banned USA firms from doing business with Huawei Technologies Co Ltd, the world's largest telecom network gear maker.

As for reimbursement over the trade war with China, farmers should not be extended favor over other industries.

"Very unsafe", said Trump, according to the BBC. "This trade aid will help fix some of the damage inflicted upon USA pork producers", he said. The NY Fed projects that many importers who are now paying the 10 percent tariff will move to suppliers outside China at the new higher rate.

Research published by the New York Federal Reserve Bank estimated that as tariffs grow larger, importers have more of an incentive to switch to goods from more expensive countries. "We don't know", said Cui yesterday.

For years, China has blocked major United States tech firms, including Google and Facebook, from fully operating in its market.

"We will be taking in, over a period of time, hundreds of billions of dollars in tariffs and charges to China and our farmers will be greatly helped". China urges the US to stop the wrongdoings to avoid further impact on the China-US trade relations.

Activists have been urging the US and other countries to sanction China over repression of members of Muslim minority ethnic groups in the northwestern Xinjiang region, where an estimated 1 million people are being detained in re-education camps.

Now he's not sure how long it will take to resolve the trade dispute.

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