U.S – China agree to Trade Truce

U.S – China agree to Trade Truce

Posted on Dec 3

U.S – China agree to Trade Truce
December 3, 2018

At the recently concluded G20 Summit in Argentina, the U.S and China each made trade concessions in an effort to end, or at least put a temporary pause in the ongoing trade war.

The U.S agreed to postpone for a period of 90 days the scheduled increase of duties for the last round of increases that were implemented on September 24th. These additional duties were scheduled to increase from the current rate of 10% to 25% on January 1, 2019 but are now postponed.

This round of duties included goods worth an estimated $200 billion. Note that previously imposed tariff increases implemented earlier in the year will remain at their current levels.

In return for this postponement of additional duties, China has agreed to purchase a substantial, but not yet agreed upon amount of agricultural, energy, and industrial products from the U.S.

According to the President, China has also agreed to reduce and remove tariffs on cars coming to China from the U.S., where currently the tariff is 40%. China also agreed to designate Fentanyl as a controlled substance to help the U.S fight the opioid crisis.

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