China grain traders await lower tariffs before US return

BEIJING, Dec 04 (Reuters): China will need to drop steep tariffs it imposed on a range of American farm products earlier this year before it can fulfil its pledge to buy substantial volumes of US goods, said Chinese traders on Monday.

China and the United States agreed on Saturday to a ceasefire in a months-long trade war that has roiled global markets and halted sales of US soybeans to the world's top buyer.

The United States (US) agreed to put on hold a scheduled increase in tariffs on $200 billion of Chinese goods due to come into effect on Jan. 1, following talks between US President Donald Trump and Chinese President Xi Jinping at a gathering of world leaders in Argentina.

The White House said Beijing had promised to buy an unspecified but "very substantial" amount of agricultural, energy, industrial and other products, with purchases of farm goods to start "immediately."

But no substantial purchases can happen with a 25 per cent duty still in place on US soybeans, corn, sorghum and wheat, said buyers and analysts.