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.