President Donald Trump revealed on Dec. 13 that the United States has reached a “large Phase One Deal” with China, announcing structural changes, massive purchases of agricultural products, energy and manufactured goods.
The Trump administration agreed to maintain 25 percent tariffs on about $250 billion in Chinese imports, clarifying that with the new agreement reached there will be no penalty on Chinese consumer goods worth $160 billion.
“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. This is an amazing deal for all. Thank you!” the president wrote on Twitter.
…..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. This is an amazing deal for all. Thank you!
— Donald J. Trump (@realDonaldTrump) December 13, 2019
China agreed to eliminate tariffs on U.S. products, and also promised to buy more U.S. agriculture.
According to USA Today, the agreement includes nonpublic details that would include U.S. demand China drop requirements that companies provide intellectual property and technology secrets to the government as conditions of doing business there.
Meanwhile, China’s deputy trade minister said the agreement represents “significant progress” in ending the trade dispute that has been going on between the two nations for 17 months, and that the measure “will bring better conditions for all.”
U.S. Trade Representative Robert Lighthizer said, “President Trump has focused on concluding a Phase One agreement that achieves meaningful and fully enforceable structural changes and begins rebalancing the U.S.-China trade relationship.”
“This unprecedented agreement accomplishes those very important goals and would not have been possible without the president’s strong leadership,” added Lighthizer.
Since July, the Trump administration has imposed $360 billion worth of import duties on Chinese products. According to the New York Post, Beijing has retaliated by taxing $120 billion in U.S. exports, including important products for the rural sector such as soybeans.
As the New York Post points out, President Trump assured that on-going talks will lead to the “opening” of the Communist regime’s market, “That’s going to be one of the great deals ever, and it’s going to ultimately lead to the opening of China, which is something that is incredible because that’s a whole big untapped market of 1.5 billion people.”