U.S.& China Announce Limited Trade Deal – No New Tariffs

The U.S. and Chinese announced a very limited trade deal with the details still opaque and many appear to be negotiated.  Most important, the U.S. canceled plans to impose fresh tariffs on $156 billion in annual imports of Chinese-made goods—including smartphones, toys, and consumer electronics—that were set to go into effect Sunday.

The U.S. will also slash the tariff rate in half on roughly $120 billion of goods, to 7.5% from 15%.

Tariffs of 25% would remain on roughly $250 billion in Chinese goods, including machinery, electronics, and furniture, however.

In return, the Chinese made promises China to boost American agricultural purchases by $32 billion over previous levels over the next two years.

President Trump is under tremendous pressure to announce some good news or a “win” as his impeachment looms in Congress with a vote next week.

See here for WSJ article.