First Phase Trade Deal with China

soybean field
arrow Go back

First Phase Trade Deal with China



First Phase Trade Deal with China

The trade war with China showed some indications of cooling off with a deal reached Friday evening which is described as Phase One.

No tariffs have been removed but the 5% increase (from 25% to 30%) on $250 billion worth of goods from China has been stayed as the two countries continue to negotiate a broader deal. The increase had been scheduled to go in effect this week. This new agreement may take several weeks to actually write and sign but it is a positive development.

The deal also includes an agreement by China to buy $40 to 50 billion worth of U.S. agricultural products.

No decision has been reached on the 15% tariff increases previously announced to go into effect in December. After Phase I is finalized the Administration has announced a broader Phase II agreement negotiation will begin. We will continue to monitor these developments and keep you advised.