American and Chinese officials today (Friday) confirmed the first phase of a trade agreement.
President Donald Trump stated, “We have agreed to a very large phase one deal with China. They (China) have agreed to many structural changes and massive purchases of agricultural products, energy and manufactured goods, plus more.”
In terms of agriculture, the President believes, “Farmers are going to have to buy much larger tractors because it means a lot of business.” Administration officials expect China to purchase between $40 to $50 billion of United States agricultural products.
“The numbers they have talked about committing to, $40 to $50 billion, would be double what they have imported before. If we can get those kinds of numbers, commitments, then there’s going to be a real bonanza for agriculture going forward,” U.S. Agriculture Secretary Sonny Perdue said. “
Today’s announcement comes just days before an additional round of tariffs was to be imposed. United States officials cancelled plans to impose tariffs on $156 billion of Chinese goods and announced their intentions to reduce tariffs on roughly $120 billion of Chinese goods from 15-percent to seven-point-five-percent. A 25-percent tariff rate will remain on roughly $250 billion of Chinese goods.
Phase two negotiations will begin immediately, according to President Trump.