US and China Getting Ready to Sign Phase One Trade Deal “Shortly”: President Trump
Arslan Butt • 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%.