The U.S. and China just agreed on a trade deal that will lead to more purchases of U.S. agricultural goods, and see December15 tariffs scrapped.
“We have agreed to a very large Phase One Deal with China. They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more,” tweeted President Trump.
“The 25% Tariffs will remain as is, with 7 1/2% put on much of the remainder. The Penalty Tariffs set for December 15th will not be charged because of the fact that we made the deal. We will begin negotiations on the Phase Two Deal immediately, rather than waiting until after the 2020 Election. This is an amazing deal for all. Thank you!”
Now, all they have to do is put it all in writing, run it past attorneys, and sign it.
From our understanding, the U.S. will remove tariffs on Chinese goods in phases. However, China is not sure when the U.S. will begin rolling those back. In addition, the White House will cancel tariffs that were set to hit China on Sunday.
In addition, China will significantly increase its agricultural purchases, but did not specify by how much. China also noted the deal will include intellectual property, technology transfers, and expansion of trade, as also noted by CNBC.
However, at this time, none of this is enforceable. All we have is the word of China and the U.S. that there is progress. It must still be put on paper. It must still be agreed upon, and then signed. Without any of that, all we have is a great story.
Moving forward, the two countries will now also begin on a second phase of the deal.
Stay tuned for more on this developing story.