It remains to be seen what the impact will be on future trade negotiations with China, but the new status quo can be expected to continue – a new status quo that will likely face difficult situations with former trading partners. The agreement removes tariffs originally planned for December 15, 2019, which would have had an impact on massive imports from China, such as mobile phones, toys and laptops. He also reaffirmed Mr. Trump`s commitment to the customs union1. September 2019 from 15 percent to 7.5 percent of Chinese products worth $120 billion, including flat-screen TVs, Bluetooth headphones and shoes. However, other tariffs remain. These include 25% U.S. tariffs on $250 billion worth of Chinese products and China`s retaliatory duties on U.S. products worth $110 billion. According to U.S.
Treasury Secretary Steven Mnuchin, the Phase 2 trade agreement, which was put on the market at the end of the first agreement, removes additional tariffs. A summary of the tariffs instituted by the two countries can be found in the table below. In the meantime, tariffs leave much of the tariffs less than leeway for companies exposed to the cost of trade wars. Several multinationals have already relocated partial operations to third countries in the ASEAN region. For their part, Chinese companies, particularly in the technology sector, have been subjected to enough sanctions to have confidence that they can freely access U.S. markets or source uninterrupted supplies to the United States. As a result, the trade war has shaken existing global trade relations to forge new partnerships and refocus on finding alternative markets and suppliers in emerging countries. “This China-phase-one agreement is proof that President Trump`s negotiating strategy is working. While It took China a long time to recognize that President Trump was serious, the deal is a great success for the economy as a whole. After all, this agreement is a measure for U.S. agriculture and a boon for U.S.
farmers, ranchers and producers,” said Sonny Perdue, U.S. Minister of Agriculture. The opportunity to participate in this market in a fairer and fairer manner has led to increased sales that support price increases and strengthen the rural economy. ATP RESEARCH > Interim. Report on the Economic and Trade Agreement between the United States of America and the People`s Republic of China: AGRICULTURAL TRADE “President Trump has kept his promise to oppose China`s unfair trade practices and expand market opportunities for U.S. agriculture through the Phase One agreement. Since the agreement came into force eight months ago, we have seen significant improvements in our trade relationship with China that will benefit our farmers and ranchers for years to come,” the United States said.