US and China Getting Ready to Sign Phase One Trade Deal “Shortly”: President Trump

Markets look set to close 2019 on a buoyant mood on promising developments towards the US-China phase one trade deal. On Saturday, Trump ..

Written by: Arslan Butt • Monday, December 23, 2019 • 1 min read

Markets look set to close 2019 on a buoyant mood on promising developments towards the US-China phase one trade deal. On Saturday, US President Donald Trump confirmed that the deal would be signed between the two world leaders “shortly”, increasing expectations for a date to be announced in early January.

While the phase one trade deal was announced back in October, both sides confirmed progress towards finalizing this deal very recently, just in time to avoid the latest round of tariff hikes threatened on Chinese imports. As part of the phase one deal, the US has called off these tariff hikes and agreed to halve some other tariffs on Chinese imports. In exchange, China has agreed to increase imports of US agricultural products.

The Chinese Finance Ministry also confirmed that it will be reducing tariffs on more than 850 different types of imports, from frozen pork to some semiconductors starting 2020. According to the ministry, the duties on frozen pork are set to be cut from 12% to 8%, while frozen avocado will see tariffs being cut from 30% to 7%. In addition, tariffs on some medications are set to be reduced to 0%.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.