Trump Announces 'Amazing Deal' in Breakthrough with China on Trade Talks
President Donald Trump said Friday that the U.S. has canceled plans to impose new tariffs on $160 billion worth of Chinese imports Sunday as part of an interim agreement that de-escalates a 17-month trade war between the world’s two biggest economies.
The United States is also reducing existing import taxes on about $112 billion in Chinese goods from 15 percent to 7.5 percent.
In return, Trump said on Twitter, the Chinese have agreed to “massive” purchases of American farm and manufactured products as part of a so-called Phase 1 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!
— Donald J. Trump (@realDonaldTrump) December 13, 2019
The office of Trump’s trade representative said China had consented to “structural reforms” that would improve intellectual property protection and curb the practice of forcing foreign companies to hand over technology as the price of admission to the Chinese market.
Some business groups said more needed to be done to combat Beijing’s aggressive trade practices.
“This deal should go a long way in reversing the downward spiral in bilateral trade relations and increasing certainty for U.S. businesses,” said Wendy Cutler, a former U.S. trade negotiator who is now vice president at the Asia Society Policy Institute.
But, she said, “it’s unclear on how far the Phase 1 agreement goes in addressing the key structural issues that brought the U.S. to the negotiating table 17 months ago.”
Trump’s announcement came minutes after the House Judiciary Committee approved impeachment charges of abuse of power and obstruction of Congress, leading the White House to argue that the president “never stops working and continues to make successful deals that benefit this country.”
Chinese officials said at a briefing in Beijing Friday that if Washington reduces the tariffs, China will lower its trade penalties on American goods and also scrap plans for new tariffs Sunday.
Trump told reporters at the White House that Chinese farm purchases would hit $50 billion. China’s deputy finance minister Liao Min said “China is ready to work with the U.S. side to do more to promote growth in trade” but would not confirm the $50 billion figure.
U.S. farm exports to China have never topped $26 billion a year.
Trump said work on a follow-up would begin “immediately, rather than waiting until after the 2020 Election. This is an amazing deal for all. Thank you!”
The president first announced a Phase 1 deal on Oct. 11, but negotiations on a final version continued for two months.
Financial markets rallied in Asia on hopes for reduced trade tension. But stocks were down modestly in early trading on Wall Street.
The administration accuses China of cheating in its drive to develop advanced technologies as driverless cars and artificial intelligence. The administration alleges, and independent analysts generally agree, that China steals technology, forces foreign companies to hand over trade secrets, unfairly subsidizes its own firms and throws up bureaucratic hurdles for foreign rivals.
Beijing rejects the accusations and contends that Washington is simply trying to suppress a rising competitor in international trade.
Since July 2018, the Trump administration has imposed a series of trade sanctions on China.
Friday’s announcement means that the U.S. will continue to levy 25 percent import taxes on $250 billion in Chinese goods and will halve the tariffs on another $112 billion to 7.5 percent. It will drop plans to target an additional $160 billion.
Beijing has retaliated by taxing $120 billion in U.S. exports, including soybeans and other farm products.
The Western Journal has reviewed this Associated Press story and may have altered it prior to publication to ensure that it meets our editorial standards.
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