Both the U.S. and China have announced a temporary pause in tariffs for the next 90 days, and the deal is moving markets.
The announcement comes after a weekend of meetings in Switzerland, the Treasury Secretary, and the U.S. Trade Representative. China will reduce its tariffs from 125 percent to 10 percent. In return, the U.S. will lower tariffs on most Chinese goods from 145 percent to 30 percent.
The DOW, S&P, and NASDAQ futures are all up significantly this morning.
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For agriculture, the meeting is seen as a potential turning point, with markets watching closely for any signals on trade, exports, and future purchasing commitments.
As farmers and ranchers navigate rising input costs, lawmakers are considering a roughly $15 billion aid package to help, which would be tied to the spending bill for the war with Iran.
Lower costs improve competitiveness, but demand remains uncertain.
Energy risks could reshape global ag trade flows.
The ag trade deficit is narrowing, but export competition remains strong.
NMPF’s Alan Bjerga discusses pending trade agreements with Indonesia and Ecuador and how they will benefit U.S. dairy producers and improve overall global competitiveness of U.S. ag products.
