Posted on 12/13/2019 9:06:35 AM PST by caww
“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.,” Trump said on Friday.
The United States will maintain 25 percent tariffs on approximately $250 billion of Chinese imports, he said, adding that there would be 7.5 percent tariffs on about $120 billion of Chinese imports—marking a 50 percent reduction in those tariffs.
Trump said that U.S. tariffs set to take effect on Sunday on about $160 billion of Chinese consumer goods will not be imposed in light of the deal.
“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!” he added.
United States Trade Representative Robert Lighthizer confirmed the deal, writing in a statement: “President Trump has focused on concluding a Phase One agreement that achieves meaningful, fully-enforceable structural changes and begins rebalancing the U.S.-China trade relationship. This unprecedented agreement accomplishes those very significant goals and would not have been possible without the President’s strong leadership.”
The announcement came a day after Trump declared, “Getting VERY close to a BIG DEAL with China. They want it, and so do we!”
(Excerpt) Read more at theepochtimes.com ...
MAGA. Keep winning. I expect the stock market to surge on this news.
They’ll renege in a few weeks.
Chinese leaders got sick of people in China’s descending economy looking under merchandise and seeing “Made in USA.”
Go Trump.
Full USTR statement below:
The United States and China have reached an historic and enforceable agreement on a Phase One trade deal that requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange. The Phase One agreement also includes a commitment by China that it will make substantial additional purchases of U.S. goods and services in the coming years. Importantly, the agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement. The United States has agreed to modify its Section 301 tariff actions in a significant way.
“President Trump has focused on concluding a Phase One agreement that achieves meaningful, fully-enforceable structural changes and begins rebalancing the U.S.-China trade relationship. This unprecedented agreement accomplishes those very significant goals and would not have been possible without the President’s strong leadership,” said United States Trade Representative Robert Lighthizer.
“Today’s announcement of a Phase One agreement with China is another significant step forward in advancing President Trump’s economic agenda. Thanks to the President’s leadership, this landmark agreement marks critical progress toward a more balanced trade relationship and a more level playing field for American workers and companies,” said Secretary of the Treasury Steven Mnuchin.
The United States first imposed tariffs on imports from China based on the findings of the Section 301 investigation on China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The United States will be maintaining 25 percent tariffs on approximately $250 billion of Chinese imports, along with 7.5 percent tariffs on approximately $120 billion of Chinese imports.
Still confused? Here is the simplest summary from CNBC's Eunice Yoon:
The December 15 tariffs will not be imposed, but existing tariffs will not be rolled back even though China says the US has "promised" to do so in phases. In other words, once again there is no actual Phase 1 deal, there is just an agreement to avoid a new round of tariffs with both sides making vague promises.
So to summarize again" there is no actual, enforceable deal. There is only a "deal" for public consumption, one that indicates both sides have promised to make unenforceable concessions, with no new tariffs imposed and Trump cutting the Sept 2019 tariffs in half from 15% to 7.5%.
China will buy what it actually needs to buy, and we will reduce the stupidest of the tariffs we imposed and leave the rest in place.
Amazing deal! Breakthrough!
I was going to say the same thing. I don’t trust commie contry.
I’d expect that too with the market..but no it’s been down most of the day. 100 points at one time. I don’t get it. I thought it would be way up listening to the pundit on Lou Dobbs last night.
Is this going to be another one of those agreements that China renegs upon within eight hours after its agreed to?
Where have I heard this before?
Actually US Stocks Hit Records when Trump signaled on Twitter that the two sides were “getting very close” to reaching a trade deal, prompting all three major U.S. stock markets to rally to session highs..I expect they will continue to rise.
Thursday:
The Dow Jones Industrial Average rose 220.75 points, or 0.79 percent, to 28,132.05; the S&P 500 gained 26.94 points, or 0.86 percent, to 3,168.57; and the Nasdaq Composite added 63.27 points, or 0.73 percent, to 8,717.32.
The Chinese economy continues to bleed out, but full scale collapse is deferred until after the 2020 election.
By then, China will have violated the agreement more than enough to drop the hammer.
I hear their banking system is in big trouble. I don’t the Chinease economy is the juggernaut everyone believed it to be.
Not to fret.....Trump knows very well how the Chinese do deals and not with both eyes open. He dealt with them before he was Pres.
What about Fentanyl?
Anybody know?
Enlightening. Thanks for the info.
FAIL.
All China wanted is the tariffs turned off. The Chinese got what they wanted. I Love Trump but hate this deal.
Tariffs are stupid? Please tell that to the rest of the world because they seem to love them.
RE: All China wanted is the tariffs turned off. The Chinese got what they wanted.
Not exactly. The previous tariffs are STILL in place. It’s the additional tariffs that would have kicked in on December 15 had this agreement not been in placed that were turned off.
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