President Trump Cancels All New Penalties for Chinese Products

This morning President Trump tweeted that “We now have agreed to a really large Phase One Deal with China – The Penalty Tariffs set for December 15th will not be charged because we made the deal.” The 15 % tariffs that may have raised costs on Chinese-made objects –including client electronics merchandise like iPhones and laptops — had already been delayed throughout negotiations, and now will not go into effect at all.

The Wall Street Journal reports that whereas 25 % of US tariffs on some Chinese merchandise will stay in place, a duty that took effect on September 1st will now be lower in half to 7.5 %. The Office of the US Trade Representative released a fact sheet (PDF) stating the deal included dedication by China to the purchase more US goods within the coming years and “requires structural reforms and different changes to China’s financial and commerce regime within the areas of mental property, technology switch, agriculture, financial providers, and currency and foreign exchange.”

President Trump had initially introduced a “Phase one” agreement back in October, and the deal is just not but signed. Based on reports, China’s Vice Minister of Agriculture and Rural Affairs confirmed the deal included plans to increase purchases, however, didn’t specify by how a lot and neither government has released a full text or detailed summary of the arrangement.

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