The EU's pledge to import more soybeans from US farmers was the "dealmaker" in the agreement between European Commission President Jean-Claude Juncker and US President Donald Trump to stop the dispute and open trade talks, EU sources told EURACTIV.
Seated in the Oval Office, European Commission President Jean-Claude Juncker told Mr Trump that the two trading partners were "allies, not enemies" and said they needed to work together to address recent frictions involving Mr Trump's threats to impose tariffs on auto imports and EU plans to retaliate.
Any further cooling of the Chinese economy brought about by future rounds of USA tariffs could slow the flow of African raw materials, among them iron ore, coal, and platinum, to China's vast industrial heartlands. Trump's $12-billion aid program is an attempt to compensate farmers for income lost from foreign tariffs imposed on U.S. goods in response to Trump's own tariffs.
"We do want trade and not aid, and whether it's soybean farmers, or dairy, or ginseng or cranberries".
"A lot of United States farmers are now under a lot of pressure caused primarily by the reactive tariffs and they are suffering a lot", Klöckner said.
But growers of soybeans - the single largest agricultural export to China, worth $12.4 billion - have largely escaped financial damage thus far, raising questions about the objective and timing of the bailout, say economists, commodity traders and farmers. It agreed to a comprehensive framework involving market access for United States agricultural products and services. They'll build relationships with other suppliers, and they may not come back when reality finally re-enters USA trade policy.
Most in the market had already penciled in heavy EU buying of USA soybeans on protein production setbacks across the European Union. The company reported revenue of $38.9 million, compared to $39.8 million during the same period a year ago. "President Juncker made it very clear yesterday that he meant to help us, President Trump, on the China problem". It could stoke further anger from the USA, which accuses China of manipulating its currency to favour Chinese exporters.
Farmers being hit by the Chinese tariffs imposed on American agriculture products as part of Trump's trade war say they don't want handouts.
Trump then threatened further tariffs, this time on automobiles, prompting cries of anguish from US auto companies and the companies that do business with them.
Trump Threatens Government Shutdown if Congress Doesn’t Fund His Border Wall
The Senate remains in session and is set to take a one-week break the week of August 6, then return for the rest of the month. Trump has also demanded that the US shift to an immigration system that's based more on merit and less on family ties.
More importantly, building a reliable trade partner takes time, so it is unclear exactly how this would succeed in the short term.
Philip Levy, a trade expert at the Chicago Council on Global Affairs and a former White House trade adviser, suggested that Chinese officials have been frustrated and confused by their previous failed efforts to reach an agreement.
But the overall resiliency of America's largest export crop to trade measures - at least to date - speaks to its global dominance of grain and oilseed production, analysts say.
He criticized "worst-ever made" past trade deals reached between the U.S. and other countries.
Yet Trump soon intensified his tariff threats anyway.
Global gas price signals determine LNG trade flows, Royal Dutch Shell Chief Executive Ben van Beurden said on Thursday. China has struck back with duties on soybeans and pork, affecting Midwest farmers in a region of the country that supported the president in his 2016 campaign.
"I have been very clear on that".
Manager Yao Yuanyuan told Reuters that she was anxious Trump's own tariffs would hurt production numbers, but said she did not know if the banners' buyers were officially affiliated with the Trump campaign or the GOP.
A day earlier, appliance manufacturer Whirlpool Corp. said tariffs were a reason its results fell short of expectations.