China and the United States confirmed on Friday morning that they had reached an agreement on the “Phase One” trade deal. The agreement includes tariff relief, agricultural products, energy, manufactured goods, and more, according to a tweet from President Donald Trump.
Trump tweeted on Friday morning, “We have agreed to a very large Phase One Deal with China. They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more. The 25% Tariffs will remain as is, with 7 1/2% put on much of the remainder.”
He continued, “The Penalty Tariffs set for December 15th will not be charged because of the fact that we made the deal. We will begin negotiations on the Phase Two Deal immediately, rather than waiting until after the 2020 Election. This is an amazing deal for all. Thank you!”
We have agreed to a very large Phase One Deal with China. They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more. The 25% Tariffs will remain as is, with 7 1/2% put on much of the remainder….
— Donald J. Trump (@realDonaldTrump) December 13, 2019
Grain markets have responded positively to the news of a trade deal with China. The rise started yesterday when tentative reports were coming out than an agreement had been reached.
The tariffs that were supposed to go into effect on Sunday have been canceled, while other tariffs will be reduced from 15 percent to 7.5 percent on $120 billion in imports. However, Trump said the United States will keep 25 percent tariffs on $250 billion of Chinese imports.
The exact conditions of the agreement have yet to be released. However, China’s vice agricultural minister said China will import more U.S. wheat and corn after the deal, according to a Reuters report.
Now, both countries will carry out a legal review and check the translation to assure correct intention.
