Markets

China halting new agricultural purchases, may slap tariffs on farm goods recently bought: State media

Key Points
  • "The Customs Tariff Commission of the State Council has not ruled out import tariffs on newly purchased US agricultural products after August 3, and Chinese related companies have suspended purchasing US agricultural products," Xinhua says.
  • This is China's newest threat in retaliation against President Donald Trump's 10% tariffs on $300 billion worth of Chinese goods announced last week.
  • China has allowed its yuan to break through 7 against the dollar for the first time since 2008.
Chinese President Xi Jinping attends a Russian-Chinese energy and business forum on the sidelines of the St. Petersburg International Economic Forum (SPIEF), Russia June 7, 2019.
Maxim Shemetov | Reuters

China said Monday that it could slap tariffs on U.S. agricultural products that it bought recently, state-run media Xinhua said.

"The Customs Tariff Commission of the State Council has not ruled out import tariffs on newly purchased US agricultural products after August 3, and Chinese related companies have suspended purchasing US agricultural products," Xinhua said Monday, according to a Google translation.

This is China's newest threat in retaliation against President Donald Trump's 10% tariffs on $300 billion worth of Chinese goods announced last week. China has allowed its yuan to break through 7 against the dollar for the first time since 2008.

"The relevant Chinese authorities indicated that China has a large market capacity and a bright prospect for importing high-quality agricultural products from the United States," Xinhua said.

"However, it is hoped that the US will conscientiously implement the consensus reached at the meeting between the heads of state of China and the US, and have the confidence to implement the commitments to create the necessary conditions for cooperation in the agricultural fields between the two countries," Xinhua said.

Chinese purchases of U.S. agricultural products remains a big sticking point in the trade conflict. Trump claimed last week that China agreed to buy "in large quantities, but did not do so." China, however, had insisted millions of tons of U.S. soybeans have been shipped to China since July 19.