[Jim Sutter, the chief executive of the U.S. Soybean Export Council, said he learned on Thursday that China had made a large soybean purchase. Mr. Sutter said that between 12 and 20 cargo ships containing 600,000 to 1 million metric tons of soybeans were being purchased from export terminals in the Pacific Northwest for October shipments to China.]
By
Ana Swanson and Alan Rappeport
 |
|
President Trump tweeted
on Thursday that China would buy “large amounts” of
American agricultural products. Credit
Doug Mills/The New York Times
|
WASHINGTON
— The trade war between the
United States and China showed signs of easing on Thursday, as China reportedly
made its first large purchase in months of American soybeans after President
Trump agreed to briefly delay his next round of tariffs.
A trade deal between the two sides is not
imminent, and deep divisions remain. But after weeks of escalating tariffs that
have pushed the bilateral relationship to its rockiest point in decades, both
countries appeared eager this week to try to calm tensions before a new round
of talks next month.
Mr. Trump said on Thursday that China would
resume purchases of American farm goods, and Beijing confirmed that Chinese
companies were making inquiries about buying products including pork and
soybeans.
The president’s announcement, made on Twitter
on Thursday morning, followed a day of cooling tensions, in which China
announced that it would grant some limited exemptions to its tariffs for
American products, and Mr. Trump responded by promising to delay his next tariff
increase by two weeks to Oct. 15
“It is expected that China will be buying large
amounts of our agricultural products!” the president said in his announcement.
Jim Sutter, the chief executive of the U.S.
Soybean Export Council, said he learned on Thursday that China had made a large
soybean purchase. Mr. Sutter said that between 12 and 20 cargo ships containing
600,000 to 1 million metric tons of soybeans were being purchased from export
terminals in the Pacific Northwest for October shipments to China.
“We’re quite happy to see this apparent thaw
in the relationship,” Mr. Sutter said. “We wish we could get trade back to
normal.”
China’s Ministry of Commerce said some
Chinese companies were beginning to make inquiries about resuming purchases of
American agricultural products. “Soybeans and pork are all within the scope of
inquiry,” said Gao Feng, a spokesman for the ministry. “I hope that China and
the United States will move in the same direction and create favorable
conditions for consultations.”
American and Chinese negotiators plan to meet
in person in early October, before Mr. Trump increases tariffs on $250 billion
worth of goods to 30 percent from 25 percent. Expectations for quickly
resolving the significant differences between the two sides remain modest. But
the recent de-escalation increases the likelihood that the next round of
tariffs might be averted, perhaps eventually opening a path to an agreement
that would smooth relations between the countries.
Markets, which have gyrated with every twist
and turn in the trade war, rose on the potential that the two sides could
ultimately reach a deal. U.S. stock indexes climbed before paring back some of
their gains. The S&P 500 index was up 0.29 percent at the close of the day,
while the Dow Jones industrial average gained 0.17 percent.
Relations between the countries have worsened
since May, when China backed away from a nearly complete deal that would have
required it to codify the agreement into Chinese law, which Beijing said would
infringe on its sovereignty. Since then, Mr. Trump has placed tariffs on an
additional $112 billion of Chinese products and threatened further tariff
increases in October and December.
China has responded to the escalation by
increasing tariffs on $75 billion of American goods. Chinese state-owned
companies have also suspended their purchases of American soybeans, pork and
other products, a severe hit to American farmers who have already lost markets
because of the trade clash.
Although Mr. Trump’s advisers publicly insist
that the trade war is having no effect on the American economy, many of them
are eager to calm tensions. They have been reviewing ways to avoid planned
tariff increases that would result in the United States taxing nearly every Chinese
toy, sneaker and computer by the end of this year.
The president pushed back on reports Thursday
that he was vying for an interim deal with China that would resolve only some
issues. “I’d rather get the whole deal done,” he said, before adding, “It’s
something we would consider, I guess.”
The administration has been weighing whether
a deal with China would be a boon or liability to the president’s re-election.
His advisers have been working for months to secure an agreement strong enough
to dodge criticism from both Democrats and Republicans that Mr. Trump is
folding to America’s biggest economic competitor.
Some White House officials, including the
president’s son-in-law, Jared Kushner, have argued that the president does not
need to seal a deal with China to win over voters. Mr. Kushner and others argue
that if the administration can deliver other trade successes, like passing the
revised North American trade agreement and announcing a trade deal with Japan,
that will be enough to help rally the base, according to people familiar with
their thinking.
But economic advisers like Steven Mnuchin and
Larry Kudlow have been more attuned to the whipsawing financial markets and
some flagging economic indicators and have advocated trying to reach a deal
with China.
Discussions between the two countries have
revolved around China strengthening its protections for American intellectual
property, opening up its markets to competition from American firms and making
large purchases of American products, like natural gas and soybeans.
The Trump administration has also pressed
China to make more structural changes, for example rolling back the influence
of state-owned enterprises in its economy. China has balked at making any
concessions it sees as compromising its ability to manage its economy, or
signing a deal it perceives as uneven. China has demanded that Mr. Trump remove
the tariffs placed on $360 billion of Chinese products, as well as grant
leniency for Huawei, the Chinese telecom giant the United States has cut off
from purchasing American supplies.
Michael Pillsbury, a China scholar at the
Hudson Institute who is advising the Trump administration in its negotiations,
said the Chinese had been paving the way to better relations by toning down
their formerly strident criticism of Mr. Trump and announcing several changes,
including proposing more free trade zones around China that would feature open
financial markets and better access for American companies.
“One swallow does not make a summer,” Mr.
Pillsbury said, quoting a proverb. “But these gestures are now more and more
numerous.”
Mr. Trump’s economic officials have also said
the delay in tariffs could smooth relations.
Mr. Mnuchin, the Treasury secretary, said on
Thursday that Mr. Trump was making a “good gesture” by agreeing to move the
deadline by two weeks so that it did not conflict with China’s celebration on
Oct. 1 of its founding 70 years ago.
“The president delayed it because of a
request from the vice premier,” Mr. Mnuchin said on CNBC. “The optics of us
raising the tariffs on Oct. 1, which is their 70th anniversary, caused them
grave concern on the symbolism.”
Mr. Mnuchin would not comment on the whether
the United States and China were discussing an agreement smaller in scope than
they originally hoped. But asked about thorny issues, he made clear that the
unrest in Hong Kong would not be part of the trade talks.
“Hong Kong is definitely not on the table,”
he said. “That’s an issue for the secretary of state to deal with. That’s not a
trade issue.”
Mr. Mnuchin did not address whether Huawei
would be discussed. He said the critical issues in the negotiations remained
the protection of American intellectual property, an end to China forcing
American companies into joint ventures, currency manipulation and increased
purchases of American agricultural products.
“We expect and we want them to buy
agriculture,” he said. “We view that as a personal attack on our farmers.”
Some White House officials played down the
significance of Mr. Trump’s reprieve on Thursday.
“It’s a small thing in the scheme of things,”
Peter Navarro, Mr. Trump’s trade adviser, said on CNN, noting that the delay
was for only two weeks. “The Chinese are paying the tariffs anyway.”
Mr. Navarro accused the Chinese of economic
aggression and stealing American intellectual property. He also pushed back
against Republican lawmakers, such as Senator Patrick J. Toomey of
Pennsylvania, who have been voicing their frustration about the tariffs.
“He’s waving the white flag, not the American
flag,” Mr. Navarro said of Mr. Toomey.
Mr. Navarro also seemed skeptical that China
would actually step up its purchases of American agricultural products.
“Let’s see if the Chinese fulfill their
commitments,” he said. “The problem we’ve always had with the Chinese is that
they don’t necessarily honor their commitments.”
Alexandra Stevenson contributed reporting
from Beijing.
