China and the US have agreed on a Phase One trade deal that would scale back some of the current tariffs on Chinese goods and avoid additional tariffs, according to President Trump and numerous news reports Friday morning.
In tweets, Trump stated that China and the US have reached a deal where the current 25 percent tariffs will remain as is, while other tariffs may drop to 7.5 percent. Additionally, the deal cancels tariffs slated on another $156 billion in Chinese goods (that did not include car audio goods), which were to take effect this Sunday, December 15.
President Trump tweeted:
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. 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.”
Bloomberg and the Los Angeles Times reported that, based on a press conference held in China late Friday, the trade agreement contains nine chapters including including intellectual property, technology transfer and market access. China, however, provided no specifics.
Reports yesterday circulated that Trump had agreed to a Phase One tariff plan, but China did not confirm the agreement until early this morning, (US, EDT time).
