Trade soap opera continues: Trump delays tariffs on ChinaChristian Fernsby ▼ | October 12, 2019
The U.S. and China struck a partial trade deal on Friday.
America Donald Trump
Topics: Trump tariffs China
Details about this agreement are still emerging; Trump himself said specifics would be written out over the next few weeks. Detentes in the trade war with China have happened before only for frictions — and tit-for-tat tariffs — to tick up again, but there seems to be some reason for cautious optimism. At least the markets think so.
According to what we know so far about the deal, the US has agreed to stop a planned increase of 25 to 30 percent in taxes on $250 billion in Chinese goods, slated to go into effect next week.
China also made some concessions, including agreeing to buy $40 million to $50 million in US agricultural products. While that could be a boon to American farmers who’ve been hit very hard by Trump’s trade spat with Beijing, the details of what products and how and when China will purchase them haven’t yet been made public. According to the president, China also has committed to opening itself more to US financial services. ■