The United States and China announced Saturday that a consensus has been reached to avoid an impending trade war. Both sides are seeming to feel like they have won.
United States Treasury Secretary Steve Mnuchin has announced tariffs are being suspended while details are being hammered out. Mnuchin made the announcement on “Fox Sunday Morning”.
Mnuchin said there are also talks on how the Chinese can make changes in their economy to allow the U.S. a fair playing field to compete.
Technology was one of the sticking points since rumors of a trade war were beginning. President Trump was most concerned about protecting U.S. technology. Mnuchin said strides are being made there as well.
The deal has already had positive effects in the U.S. Ag sector. China has agreed to drop its probe into and 178% tariff on U.S. Sorghum. Other Ag products such as ethanol and pork could also see their tariffs reduced or removed.
China is just as relieved as the United States to see light at the end of this dark trade tunnel. Chinese state media has said an agreement was in “the best of interest of both countries”. Chinese media also has claimed agreements were reached based on China’s refusal to surrender.
While both countries are claiming victory, one thing is certain: The people who are working in the U.S. Ag and Manufacturing sectors are breathing a bit easier today.