American and Chinese trade officials met last week to go over the Phase One trade agreement. Greg McBride, commodities broker with Allendale, offers insight into the latest discussion.
“They had a peacekeeping-type of conversation to get an idea of how to keep both sides of expectations, get this trade deal back underway, and not have to worry about the effect of more tariffs,” McBride said.
Negotiations will likely continue. Officials must address China’s inability to meet quotas outlined in the Phase One trade deal.
China has purchased an assortment of agricultural commodities. However, McBride states, “China is behind on the overall amount of goods they need to buy from the United States, under the Phase One trade deal.”
President Donald Trump may still impose additional tariffs. McBride does not believe “we are out of the woods yet.”
“The President has said that he’s not sure what he’s going to do. He’s upset with the way the Chinese have handled the coronavirus from their perspective,” McBride said.