The newly revealed details of the initial phase of the US-China trade deal showcase China’s agreement to buy an additional $80 billion worth of US manufactured goods over the next two years.
This trade truce’s first phase is anticipated to bring advantages to several major manufacturers, with Boeing being a prominent beneficiary as it continues to recover from the repercussions of the two 737 Max tragedies. In this phase, China will increase its purchases of manufactured goods by $80 billion and agricultural goods by $32 billion over the next two years. In 2017, the US exported approximately $24 billion in agricultural goods, indicating that with this trade truce, the total value of US agricultural exports is projected to reach around $40 billion, aligning with the target declared by US President Donald Trump.
The signing of the “Phase One” deal is scheduled to take place on Wednesday, with President Trump signing on behalf of the US and Chinese Vice Premier Liu He signing on behalf of China. The agreement signals a substantial rise in China’s total imports of agricultural and manufactured goods from the US. Some experts express doubt about China’s ability to fulfill such a commitment. Regardless, this news is likely to be well-received by American farmers, who bore the brunt of Chinese retaliatory tariffs during the trade conflict.
Further revelations are anticipated in the future. Presently, it is known that the $80 billion commitment for manufactured goods will encompass significant purchases of US vehicles, automotive components, semiconductors, aircraft, and agricultural machinery by China.
