Us and Chinese trade representatives have agreed in principle on the terms of the first-phase agreement, bloomberg reported on Thursday, and US President Donald trump has approved the trade deal and will delay the imposition of new tariffs that will be imposed this week.
The new tariffs on Dec. 15 will apply to nearly $160 billion worth of Chinese imports, such as video game consoles and computer monitors
List of 15 December: List 4B – Effective December 15, 2019.pdf
Mr. Trump tweeted on Thursday that he was sending a message of optimism
Chinese and us trade representatives have in principle hammered out the terms of a phase I agreement that would increase China's agricultural purchases to the us and give the us other concessions, a source said.As part of the deal, the United States will cut existing tariffs on Chinese imports and eliminate new tariffs that take effect on Sunday.
While the legal text has yet to be finalized, U.S. trade representative Robert Lighthizer and Chinese ambassador to the U.S. cui tiankai are expected to sign an outline agreement today (13), another source said.
In addition to canceling new tariffs on Chinese goods that will take effect on Sunday (15th), the Trump administration has proposed to reduce the existing tariff rate on some US $ 360 billion of Chinese products by 50% in the past five days in exchange for China's guarantee of large purchases of US agricultural products And other products, better protection of intellectual property rights, and greater opening of China's financial market
The us has also urged China to commit to a quarterly review of agricultural purchases and to ensure that purchases do not fall by 10 percent.
However, sources said the us had proposed including a "snapback" clause in the text of the interim agreement, which would give the us the right to revert to tariff rates at the previous level in case China fails to honour its commitments
In the past, Chinese negotiators have been reluctant to agree to written commitments to U.S. agricultural purchases and detailed timetables for fear of harming relations with other trading partners, while Chinese trade representatives have argued that the "quick withdrawal mechanism" clause is violating China's sovereignty
So far, a White House spokesman has not made public the decision to sign the deal, but judging from trump's tweets on Thursday, it was only a matter of time before the announcement was made.