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China is reportedly close to removing tariffs on agricultural products in exchange for relief for ZTE

  • Reuters and Dow Jones reported U.S. and Chinese officials are working on a deal that would reprieve China's ZTE from crippling sanctions.
  • In exchange, Beijing would remove tariffs on U.S. soybeans, the reports said, which cited people familiar with the matter.
  • Soybean prices soared on the reports.

China may remove tariffs on U.S. agricultural products, including soybeans, according to reports from Reuters and Dow Jones.

The two outlets said Monday U.S. and Chinese officials are working on a deal that would reprieve China's ZTE from sanctions which prohibit U.S. companies from selling components to the company. In exchange, Beijing would remove tariffs on U.S. soybeans, the reports said, which cited people familiar with the matter.

Soybeans futures jumped the reports, with futures for July delivery trading $14.50 higher at $1,017.75 per 5,000 bushels.

China announced a 25 percent charge on 106 U.S. products early last month. These products included soybeans, cars and whiskey. The move by China followed President Donald Trump unveiling a list of Chinese imports he aimed at cracking down on.

Tension between the two largest economies in the world rose as both countries dug their heels in on trade matters. However, that tension appeared to thaw slightly on Sunday, when Trump said he would help ZTE "get back into business, fast."

U.S. stocks rose Monday on the back of Trump's tweet, as investor fears of an impending trade war with China decreased.

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