The first step towards ending the trade war between the US and China has been taken. Both countries have signed the first phase of the trade deal. In the month of December, both the countries had decided to move towards a trade deal.
Partial tariffs were withdrawn
As part of the first phase of the deal, the US announced the withdrawal of some new tariffs on goods imported from China. In return, China will buy more Agri products from the US. Most of the world’s stock markets went up on Wednesday amid the possibility of the deal being signed. However, Indian stock markets closed with a fall.
After the consent of the second phase, all the tariffs are returned
At an event held at the White House, President Donald Trump said that the second phase of negotiations with China would also begin soon. The two countries will move towards the second phase as soon as the first phase of negotiations comes into effect. However, by then the tariff on Chinese imports of hundreds of billions of dollars will continue to be the same as before. Trump said that as soon as the consent for the second phase is made, we will withdraw the extra tariff. He said that this deal is historic.
China will import $ 200 billion
China will import more than $ 200 billion worth of American goods over the next two years. Of this, $ 50 billion of agricultural products, $ 75 billion of manufacturing products and $ 50 billion of energy will be from the sector.