Thursday, January 16, 2020
U.S. – China Sign Phase One of Economic and Trade Agreement
In the first phase of their planned trade deal signed on January 15, the U.S. and China agreed that the U.S. will reduce Section 301 List 4a tariffs from 15% to 7.5%. This will be followed by a formal notice of the reduction in the tariff to be published soon. The 25% tariffs on Lists 1, 2, and 3 will remain in place at this time.
Using 2017 baseline amounts, China agreed to purchase an additional $200 billion more of American exports in 2020 and 2021. This will include manufactured goods consisting of among other things, industrial machinery, electrical equipment and machinery, aircraft, and other manufactured goods. This agreement also includes certain goods that fall under agricultural products, energy products, and services.
Also included in this first phase are agreements on Intellectual Property, Technology Transfer, Agriculture, and expanded trade.
The terms of phase one of this agreement will enter into force within 30 days from the date of signature by both parties. Both parties will agree upon the timing of future negotiations.
For more details on the agreement, click on the link: US-China Phase One Agreement