American farmers optimistic about trade truce

World
Europe

02:33

The trade truce between China and the U.S. has sent positive signals to U.S. farmers who have borne the brunt of retaliatory tariffs, according to U.S. Secretary of Agriculture.

Under their 90-day truce the U.S. will postpone ramping up tariffs on 200 billion U.S. dollars of Chinese imports to 25 percent, originally scheduled to take effect on January 1.

Soybeans in Wyanet, Illinois, U.S., September 18, 2018. /VCG Photo

"As you know the 90-day cooling off period where we won't go to 25 percent tariffs on those additional 200 billion is a great opportunity for us to get serious to make the decisions that will benefit both countries. We would love to restore the trade, farmers have borne the brunt of retaliatory tariffs and I would love to see them removed," said Sonny Perdue, U.S. Secretary of Agriculture.

Illinois is the leading producer of soybeans in the U.S. Over the last few months, the price of soybeans has fallen below the cost of production.

The Illinois Farm Bureau's annual meeting brought together farmers from across the state. The main topic of discussion was the trade truce agreed between the U.S. and China.

"It's a beginning step. And that's not just President Trump but both presidents have agreed they are going to have a discussion. For which we haven't had for a long time," said Robert Klemm, a member of the Illinois Farm Bureau Board of Directors.