A possible agreement between President Trump and China that would relax penalties on a Chinese telecom company could ease the agriculture tariff threats. Trump is talking with China to ease restrictions on ZTE, a smartphone company that shut down major operating activities last week after Trump’s seven-year export ban stemming from trade violations. A source close to the talks says a “mini-deal is in sight” that would give China relief for ZTE, and return to “status quo” for U.S. agriculture, according to the Hagstrom Report.
China has threatened tariffs on U.S. agricultural products, including soybeans and pork, and has slowed the importation of U.S. ag products by inspecting each export container. The threats stem from Trump’s steel and aluminum import tariff.