The US and China signed trade deal to ease tensions

The US and China signed trade deal to ease tensions
Trump announced the deal at a press conference in Washington. Source: Getty Images
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Daily US Times, Washington: The US and China signed a deal aiming to ease the trade war between them. The trade war has rattled markets and weighed on the global economy.

Both the parties described the deal as better for them. President Trump said the pact would be “transformative” for the US economy while China called it a ”win-win”.

China hopes the Deal would help foster better relations between the two countries.

China agreed to boost US imports by $200bn above 2017 levels and strengthen intellectual property rules. In exchange of that, US reduces some of the new tariffs it has imposed on Chinese products.

Though the two countries reached a deal, still the majority of the border taxes remain in place, which has prompted business groups to call for further talks.

Jeremie Waterman, president of the China Center at the US Chamber of Commerce, said people should enjoy the Deal. He suggested not wait too long to get back to the table for phase two.

The world’s two biggest economies have engaged in a tit-for-tat tariff war since 2018, which has led to extra import taxes being levied on more than $450bn (£350bn) worth of traded goods.

At a signing ceremony in Washington, Mr Trump said they are ”righting the wrongs of the past and delivering a future of economic justice and security.”

What’s in the Deal?

China has agreed to import at least $200bn from the US. The agreement shows China will boost purchases of agriculture by $32bn, manufacturing by $78bn, energy by $52bn and services by $38bn.

The country has agreed to take more action to prevent trade secret theft.

Under the agreement, the US will maintain up to 25% tariffs on an estimated $360bn worth of Chinese goods. In response to US tariffs, China also increased tariffs on $100bn worth of US products. The country is also expected to maintain the majority of them.

Source: US-China announced new trade agreement