Central Illinois farmers are keeping close eye of United States trade talks with China which this week seems to have taken a turn for the better.
In a joint statement, the two countries announced that China has agreed to, quote, “significantly increase” purchases of United States goods and services. It’s unclear just how much the increase will be.
The announcement comes following weeks of tariff threats from both countries that had experts worried about a potential trade war.
President of the Peoria Farm Bureau Patrick Kirchoffer says the increase is a step in the right direction for the Midwest.
“It is a relief to hear the talks and to hear that the tariffs will not be implemented,” said Kircoffer. He adds, “You can see that on the board of trade and the prices of commodity increasing these last couple of days, that its just a positive factor in the farm community. “
Financial group Morgan Stanley estimates there could be a potential increase of $60-90 billion worth in Chinese purchases of United States goods, with a rise in agriculture imports.