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Trump complains China hasn't met G20 promise on farm goods purchase

13 July 2019

Beijing's retaliatory tariffs a year ago on imports of agricultural goods have slammed many farmers - a key Trump constituency - forcing bankruptcies and a slowdown in farm lending as many operations struggle and fall deeper into debt.

U.S. -Chinese trade has weakened since President Donald Trump started hiked tariffs previous year on goods from China in a fight over Beijing's technology ambitions.

White House economic adviser Larry Kudlow said on Thursday the United States expects China to start purchasing crops and US agricultural products soon and noted that trade talks between the two countries are ongoing.

China's June exports are expected to have declined 2 percent from a year earlier, according to the median estimate of 34 economists in a Reuters poll, compared with a 1.1% gain in May. "While a deal makes sense for both sides this year, it's far from guaranteed and could hit many more snags".

"The producer price index growth dropped to zero last month, and it showed that the real economy, manufacturing in particular, will continue to be weak".

Though both sides agreed in late June to resume negotiations, and Washington said it would hold off on additional levies, existing tariffs remain in place.

Trump has imposed 25 percent tariffs on $250 billion of Chinese goods and has pledged only to accept a deal with Beijing that includes structural reforms to the way China does business.

Trade envoys talked by phone Tuesday in their first contact since Trump and Xi met in Japan, the Chinese Commerce Ministry said. China's total exports ticked up 0.1 percent on-year during the first six months while imports fell 4.3 percent. But the U.S. tariffs did not have an intended effect of reducing the United States trade deficit with China. China's exports to the U.S. dropped 7.8 percent in June and more than 8 percent over the first half of the year. It was also above the consensus forecast of $44.65 billion.

China's trade surplus with the United States, a major source of friction with its biggest trading partner, rose to $29.92 billion in June from $26.9 billion in May. During the first half of the year, it expanded to $140.5 billion from $133.8 billion last year.

"Hopefully, they will start soon".

Trump complains China hasn't met G20 promise on farm goods purchase