The United States and China have agreed to a limited trade deal that is expected to significantly throttle back tensions between the two countries. According to the Office of the US Trade Representative, the agreement being referred to as “Phase One” will indefinitely suspend tariffs set to go into effect on December 15th. In exchange, Beijing has agreed to buy $50 billion worth of US farm goods, and tighten intellectual property protections.
“The United States and China have reached a historic and enforceable agreement on a Phase One trade deal that requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technologytransfer, agriculture, financial services, and currency and foreign exchange,” the office of the United States Trade Representative said in a statement. “The Phase One agreement also includes a commitment by China that it will make substantial additional purchases of US goods and services in the coming years.”
This “phase one” deal is part of a larger, overall trade agreement with China that will still need to be negotiated. In addition to suspending the December 15 tariffs, other tariffs implemented in September will be reduced to 7.5%. The 25% tariffs on another $250 billion worth of Chinese imports, in place since May, will remain in full effect.
OTS Astracon will continue to keep our customers updated of any developments in these trade discussions. Please contact your Sales representative with any questions.