President Trump and China have come to a agreement with the Phase One trade deal and the US will now be cancelling new tariffs on Chinese goods that are going into affect on Sunday.
The Wall Street Journal also made a post about this saying that this deal will spare some popular devices from tariffs that would have totaled an estimated $160 billion of imports to china that would have been impacted. Some of these devices being Apple products like the iPhone and Mac Pro.
Office of US Trade Representative said that this deal would need changes to be brought to:
China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange,
This trade was between the two countries have gone on for more than a year now and Tariffs have been Trumps weapon against China. These are basically taxes put on Chinese goods that are to be imported to the US. These taxes are paid by importers in the US to customs on their arrival. This affects China very badly since many companies doing business with Chinese companies would look elsewhere to avoid paying such high taxes on imported goods.
According to eh US Trade Representitive, there are 25% tariffs on an estimated $250 million of goods imported from China and another 7.5% tariffs on $120 billion of chinese imports as well.
Back in September, $125 billion worth of goods were affected by 15% tariff. Now another 15% tariff was being put on goods which mostly included cellphones, laptops and other computer equipment and accessories as well as toys.
The impact would have been seen after the holidays when stores in the US would have restocked their shelves in the coming year. However, Trump and China seem to be working on the matter but it does go south pretty quickly every other day.
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