US and China agree on an interim trade deal.
A Deal in the Making: The US and China on Friday announced that they have reached a phase one trade deal, which would include some tariff relief, increased agricultural purchases and structural change to intellectual property and technology issue.
Zooming In: As part of the deal, China would purchase more products from American farmers and other exports. In return, the US would cancel its next round of tariffs on Chinese goods set to take effect from Sunday. The US would leave 25% tariffs on $250bn in imports in place while cutting existing duties on another $120bn in products to 7.5%.
US President Donald Trump called the deal “phenomenal” and said that the US would continue to use the remaining tariffs as leverage in future negotiations with China.
Experts Speak: "Rather than a comprehensive deal, he was settling for the one thing that he needed most to secure his re-election, which was a deal on agricultural exports that would boost US exports from farm country to a level higher than they had been before the trade war," noted James Lucier, Managing Director at Capital Alpha Partners. What does the interim US-China trade deal mean, and what it doesn't. More on this here. CNN Politics
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