After being elected the president of the United States, Donald Trump imposed a series of tariffs on foreign imports which would are meant to boost local manufacturing. These tariffs were put into place in the year 2018 and initially they covered electronic goods but they have since been extended to other commodties like metal as well. Apart from the standard taxes, the Trump administration set and escalated tariffs on goods imported from China, which has lead to a trade war between the two nations.
While the two countries have been trying to negotiate a deal for several months now, earlier today the President of US and a Senior officials of the Chinese government met at the US White House. Reportedly, the two countries have come to a preliminary deal to make things work better.
Acccording to the deal, China will faciliate protection of intellectual property owned by American companies. Besides they will bump up the purchase of US agricultural products by $40 billion to $50 billion. In return, the US will defer a tariff hike which was scheduled for October 15 on roughly $250 billion in Chinese imports.
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Besides, US has also scheduled another tariff hike on consumer goods imported from the China which was set take effect on December 15. As of now, no decision has been made whether this round of tariffs will proceed or not. Moreover, the deal does not even address Huawei which was blacklisted by the US Commerce Department, earlier this year.
Nonetheless, the two countries will reportedly make more negotiations in the coming future and the Huawei situation is expected to be discussed then. If the Huawei ban is not lifted soon, Apple is assumed to take the spot of the world’s second largest smartphone maker from the Chinese company.
Lastly, the agreement is currently just a principle and it could take three to five weeks to put on paper, officials said.
(via)
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