Phase one agreement between the US and China, confirmed.

USTR clarifies Section 301 duties

Just recorded this morning in the Federal Register, the United State and China have come to a “phase one” agreement. After months of escalating tariffs and false starts, both sides have come to an agreement on a preliminary solution that will prevent the full implementation of the List 4B Section 301 duties and reduce the List 4A duties to 7.5% from the initial 15% levels set to happen on December 15, 2019.

“The Penalty Tariffs set for December 15th will not be charged because of the fact that we made the deal. We will begin negotiations on the Phase Two Deal immediately, rather than waiting until after the 2020 Election,” explained President Trump.

Reforms to China’s policies regarding intellectual property and currency manipulations are included as key points of the agreements as agricultural buys have been a paramount issue across months of negotiations. The intellectual property theft that occurs between the two nations has been on of the top instances of trade tensions alongside the lack of agriculture buys that crippled American farmers earlier this year.

“The phase one agreement also includes a commitment by China that it will make substantial additional purchases of U.S. goods and services in the coming years,” said the United States Trade Representative, Robert Lighthizer. “Importantly, the agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement.”