Trade Tensions Rising Between China and Global Partners

MELBOURNE, AUSTRALIA – As tensions between the United States and China are rising, Reuters reports that it is just one of many conflicts the Chinese are facing. Back in January, the two countries agreed to a Phase One Trade deal that reduced or eliminated tariffs on many goods and services, including agriculture. However, after the global Coronavirus outbreak – linked back to Wuhan, China – President Trump has been tough on the Chinese, demanding answers and compensation for allowing the epidemic to happen. Now there’s a growing concern in Australia as China has suspended the majority of beef imports from down under, and is hitting Australian barley with tariffs. Though both sides say it is unrelated, Australian Trade Minister Simon Birmingham can’t help but believe the island nation’s call for more information on the coronavirus outbreak from China as the main culprit for the spat. Back in the U.S., recent Chinese buying is providing some hope for a robust demand recovery next marketing year, says University of Illinois Agricultural Economist Todd Hubbs. He admits, however, that the strained relations “and uncertainties associated with the pandemic look to hang over the markets for the remainder of the year.”
(SOURCE: Reuters)