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Markets reel on re-escalation of China Trade War

The market is reeling as the trade war with China re-escalates. 

CHS vice president of grain marketing Chris Pothen says there seemed to be a reprieve in trade tensions between the world’s two biggest economies between July 19^th and August 2nd.

“During that period there was a small window where there was some activity between Chinese private buyers where they were granted somehow a release of the 25 percent tariffs for a period of time (and) tonnage. They did buy some commodities.”

But following President Trump’s threat of more tariffs in September, he tells Brownfield China pulled back on those purchases.

“And now those tariffs are back on, and the business has slowed down quite a bit.”

Pothen describes negotiations between the U.S. and China as fluid as leaders of both countries are scheduled to meet again next month.

Brownfield spoke to Pothen during the first day of Minnesota Farmfest in Redwood County.