At the ending of the year 2019, Donald Trump announced that he would sign a trade agreement with China on 15 January. This ‘phase one’ China Tariff agreement is expected to reduce long-lasting tensions between the US and China, two large economic countries.
Trump says the treaty will be signed in Washington with “high-level representatives” from China present.
We expect further progress on the treaty due to the President writing on Twitter, “At a later date I will be going to Beijing where talks will begin on Phase Two!”
Although the text hasn’t been shared publicly, earlier this month, it was announced that the two sides said that China promised to increase purchases of US agricultural products and boost intellectual property protections, while the US rolled back tariffs.
The Recent China Tariff Progression
The following tariff lists have affected the US and China in the last few years:
- Effective July 6, 2018
- 25% additional duty rate on $34 billion worth of China goods
- Eight sets of exclusions
- Effective August 23, 2018
- 25% additional duty rate on $16 billion worth of China goods
- Three sets of exclusions
- Effective September 24, 2018
- Initial 10% increased to 25% additional duty rate on $200 billion worth of China goods
- Seven sets of exclusions
- Effective September 1, 2019
- 7.5 % additional duty rate on $267 billion worth of China goods
- Exclusion list still in progress
What This “comprehensive phase one deal” Means For 2020
Trump said he wanted to see a wide-ranging deal. He plans to sign this deal with President Xi Jinping.
- Global markets end 2019 with healthy gains
- A quick guide to the US-China trade war
- Trump halts new tariffs in US-China trade war
Although the US has left issues such as China’s subsidies for specific firms, for further discussion, Donald Trump’s tweet refers to the signing as a “comprehensive phase one deal.”
The US and China have both raised import taxes on hundreds of billions of dollars worth of exports. This increase has unnerved markets and has hurt global economic growth.
In the United States, the taxes have specifically affected agricultural professionals, putting Trump’s chances for re-election in 2020 at risk from this political constituency.
If you have questions or concerns about the China Tariff and how it will affect you or your business, contact us to talk to a law professional.