Trump Agrees to Limited Trade Deal With China
President Trump has agreed to a limited trade deal with China after prolonged negotiations caused economic tensions between the two countries. The agreement will reduce existing tariff rates on Chinese goods and effectively cancel new levies that were set to take effect on Sunday. On Thursday, Trump met with trade advisers to devise a plan to address the prolonged negotiations with China regarding trade. Michael Pillsbury, an adviser to the president, claims that the deal consists of China agreeing to buy $50 billion worth of agricultural goods over the course of the 2020 in exchange for reduced tariff rates.
The US has offered to slash existing tariff rates, which range from 15% to 25%, by half on roughly $360 billion Chinese goods. The deal was proposed to China within the last five days. In the case that China fails to make the purchases it has agreed too, the US would reimpose tariff rates as this exist now in a situation referred to by trade experts as a “snapback” provision.