Just announced this morning, the United State and China have come to a “phase one” agreement. After months of tit-for-tat increases and false starts, both sides have settled on a solution that will prevent the December 15th implementation on List 4B and reduce the List 4A tariffs to 7.5% from the initial !5% levels.
“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,” explained President Trump.
Other changes include reforms to China’s policies regarding intellectual property and currency manipulations, key points in addition to an increase in agricultural buys that have been a hot button issue across months of negotiations.
“The phase one agreement also includes a commitment by China that it will make substantial additional purchases of U.S. goods and services in the coming years,” said the United States Trade Representative, Robert Lighthizer. “Importantly, the agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement.”
We’ll keep monitoring the announcements of this agreement and bring more information as it becomes available.