President Trump has announced the first phase of a trade deal with China to try and put an end to the ongoing trade war between the two countries.
Both the US and China have agreed on the terms for this initial phase, which include reducing tariffs on certain Chinese goods in exchange for China purchasing more US agricultural products. This agreement has prevented the 15% tariffs on $160 billion worth of Chinese goods from being implemented, and China has canceled its planned retaliatory tariffs on US cars. Additionally, the US has cut in half the tariffs that were imposed on Chinese goods on September 1.
However, the 25% tariffs on $250 billion worth of Chinese goods will remain for now, and discussions about these tariffs will continue in the second phase of negotiations next year. China has committed to addressing its trade surplus with the US by buying American products and services totaling at least $200 billion over the next two years, as the US currently has a trade deficit of $419 billion with China.
An important aspect of the trade deal is the protection of intellectual property rights. The phase one agreement includes stronger protections for intellectual property rights in China, such as enhanced legal safeguards for patents and a more robust system to combat infringements on intellectual property rights. China has also agreed not to devalue its currency to gain a trade advantage.
