A partial trade deal between the US and China has been agreed to in principle. Bloomberg first reported the news Friday afternoon saying that, as part of the deal, China would agree to some agricultural concessions and the US would provide some tariff relief.
Speaking in the Oval Office with Chinese Vice Premier Liu He Friday afternoon, Trump gave some of the details of what this will mean for agriculture.
“So, we’re going to be up to 40 to 50 billion dollars of agricultural purchases, which means the farmers are going to have to work a lot of overtime to produce that much. That’s the largest order in the history of agriculture, by far, by two and a half times.”
He says $16 billion was the largest amount China had ever purchased previously. He thinks farmers are up to the task.
“I’d suggest the farmers have to go and immediately buy more land and get bigger tractors. They’ll be available at John Deere and a lot of other great distributors.”
This is just phase one of the proposed deal that Trump says does include some provisions on intellectual property theft and forced technology transfer, though more provisions on those will likely come during phase two negotiations that will begin immediately following the formal signing of phase one. He believes that should happen in the next four weeks.