The United States and China have reached a tentative trade deal. This would push back any decision to roll out new tariffs.
US and Chinese negotiators have been working on for weeks and President Trump is reportedly prepared to sign the phase one trade deal. The president and top advisors met to review an outline of the deal, which they expect to confirm with Beijing.
Earlier reports, which likely came amid negotiations, said U.S. negotiators have offered to cut existing tariffs by as much as half on $360 billion worth of China-made goods, plus cancel the List 4B tariffs scheduled to take effect on December 15.
The debate over a potential tariff slash has been ongoing for the past month as the U.S. and China wrestled over whether a rollback was ever on the table. Now it seems the offer stands, and in exchange, the U.S. is reportedly seeking firm commitments from Beijing with regard to buying large quantities of U.S. agricultural products, plus the intellectual property protections that set the trade war in motion.
If Beijing doesn’t stick to the commitments that could finally see this phase one deal established, there’s a “snapback” clause that would take punitive tariffs back to their original elevated rates.
If Beijing OKs the deal, the industry could see the impending tariffs officially come off the table.