China Ties Agriculture Binge to Trump Reducing U.S. Tariffs

Beijing wants a rollback in tariffs in its trade war with the U.S. before China can feasibly agree to buy as much as $50 billion of American agriculture products that President Donald Trump claims are part of an initial deal, people familiar with the matter said.

Chinese officials are 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.

U.S. equity futures pared gains on the news and the yen extended an advance, as investor optimism waned about prospects for a trade deal between the world’s two largest economies.