China – US – (Special Coprrespondent / Web Desk) – China has decided to temporarily stop collecting a 24% extra charge it placed on many American products. This pause will last for one year. However, a separate 10% charge on these goods will remain. This move is part of ongoing trade discussions between the two countries.
In a further friendly step, China will also remove extra fees on some American farm products. This is good news for US farmers who sell goods like soybeans to China. The change is meant to make these American products more affordable for Chinese companies to buy.
However, for a key product like soybeans, American supplies are still more expensive than those from other countries like Brazil. Even with the change, Chinese buyers must pay a 13% total charge on US soybeans. This makes Brazilian soybeans a more cost-effective choice for many.
The trade disagreements had greatly reduced China’s purchases of American crops. Before the tensions, the US was a top supplier of soybeans to China. In 2016, China bought over $13 billion worth. Since then, those purchases have fallen sharply, hurting American farmers.
Canada & Pakistan agreed to facilitate canola commerce.
Recently, the leaders of both countries held a positive meeting, which eased worries about their trade conflict. This has given hope to businesses and investors in both nations. As a sign of goodwill just before the meeting, a Chinese company bought several shipments of US soybeans. While this is a positive step, some experts believe it will take time for trade to fully return to its previous levels. For now, Brazil remains the most popular and economical source of soybeans for buyers around the world.
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